Iran Billet market is still sluggish. Size 150 mm was offered at around USD 739 per tonne on truck in Anzali port including 4% VAT but deals has been done at limited tonnages.

The main factor for the current situation of billet market is deadly silence of Long products market. In global markets billet price is downward and importers prefer holding wait and see policy. At the other hand, exchange rate is the other problem of importers.

Almost all foreign suppliers prefer to sell based on TT instead on LC. Though, cost price of imported billet would be more than USD 868 per tonne after custom duty and VAT based on CFR price of USD 650 per tonne in Anzali. But if the transaction be done based on LC payment, cost price would be USD 721 per tonne.

Day by day less foreign sellers would accept LC from Iranian buyers, so importers are so much worried about the future. Fluctuations in exchange rate has made importers more interested investing in exchange market which is more secure and have lower risk, instead of steel market.

Besides, sections production level has declined in Iran so billet demand is scarce. Some market participants believe that if global billet prices stop falling, Iran market would improve too.

(Sourced from www.irsteel.com)