Billet market was downward during last week in Iran. Billet size 150 mm was around USD 607 per MT to USD 610 per MT on truck in Anzali including 6% VAT at beginning of the week, but finished the week at USD 600 per MT. Price of domestic billet size 120 mm was around USD 575 per MT to USD 579 per MT ex work including 6% VAT but declined by USD 8 per MT by end of the week.

Khouzestan Steel Complex sold 19,000 tones of its billet at base price of USD 563 per MT excluding VAT at IME. This base price is not interesting for long products mills. After accounting VAT, transportation fees and converting fees , minimum cost price of long products would be USD 656 per MT . But last week some producers sold their long products lower than this rate.

At the moment billet producers are facing with two main problems, scrap supply and their liquid capital rate. Some mills stopped production during last week but prices dropped as long products market was downward.