Billet market continued downward trend during week 48 in Iran. Billet size 150 mm was priced at IRR 14,700,000 per tonne on truck in Anzali port including 5% VAT and IRR 14,300,000 per tonne in Imam Khomeini port. Some buyers were bidding IRR 200,000 per tonne lower but no transaction was done at their requested prices.
Currently imported billet price is USD 560 pe rtonne CFR Anzali port and USD 590 per tonne CFR Imam Khomeini port after custom duty and other costs, final price would be IRR 15,800,000 per tonne in Imam Khomeini port and IRR 15,000,000 per tonne in Anzali port. But at the moment some importers have cheaper stocks which were bought some months ago.
Any way if the current situation continues domestic billet will decrease more to lower than IRR 15,000,000 per tonne. Besides total supply level during last Iranian month (October 22nd to November 20th) dropped by 200,000 tonnes compared to a month before.
Market participants believe that if prices continue dropping, the confidence would disappear from the market, so production level will decline or may be stop.
