IRON and STEEL
Iran's Esfahan Steel Company is ready to ship its first rebar cargo to the UK, a company source told S&P Global Platts.
The deal for 5,000 tons at $505/ton FOB southern port was concluded in October.
"The cargo is due in late January 2018 and is now ready to be shipped," the company source said on Tuesday.
"Additional contracts are nearly finalized for the same destination, while another cargo is under negotiation for Scotland," he added.
This comes after ESCO became the first Iranian steelmaker to obtain UK Cares certification, confirming its billet and rebar conforms to BS 4449:2005 Standard Grade B500B.
ESCO is Iran's largest producer of long products and the only Iranian steel producer using blast furnaces of which it has three. However, one of the furnaces (with 1 million tons/year capacity) is idle as a result of low demand in the domestic market.
About 50% of the company's output were exported in the first nine months of the current Iranian year (ending March 20) to Belgium, the Netherlands, Sudan, Egypt, Thailand, Pakistan, Oman, the UAE and other parts of the Middle East, according to the company.
ESCO was the second biggest Iranian steel exporter during the period, after Khouzestan Steel Company, as it shipped 805,434 tons of beam, rebar, coils and other products overseas, indicating a 87% rise year-on-year. Rebar made up 115,451 tons of ESCO’s overall exports, rising 6% YOY. It was followed by beam and coil with 80,343 tons and 48,589 tons respectively. Beam shipments were down 25% YOY, while coil exports surged 999%.
The European Union announced definitive anti-dumping duties on imports of hot-rolled coil from Iran and three other countries in October 2017, while exports of semi-finished products have continued.
It is the first rebar cargo to be shipped to a European country from Iran, a Tehran-based steel trader told Platts on Wednesday.