NEWS
IRON and STEEL   ECONOMY  

Is Iran Routing Steel Billets Exports through India?

A steel billet export vessel arrives at Indian port on 2nd Dec, 2018, from Iran, which is likely to be re-routed to Thailand, SteelMint learned from market participants.

Recently, a consignment of prime newly continuous casting steel billets weighing around 23,500 MT grade 55P size 150MM X 150MM voyaged on November 26, 2018 from Bandar Imam Khomeini port, Iran reached Kandla port, India’s west coast on 2nd December, 2018.

However, this consignment is not to be consumed by Indian re-rollers rather it will be re-exported to Kohsichang port, Thailand, which is eventually the largest buyer of Iranian billets. Sources mentioned to SteelMint that cargo is bought by a Russian trader and will be exported to a Thailand based trader.

This is evident that traders are exploring export routes to other countries via India amid US Sanctions on Iran.

US Sanctions made exports tough for Iran

In August 2018, United States (US) President Donald Trump had withdrawn from the 2015 nuclear accord with Iran and re-imposed many sanctions against the Islamic republic. Through these sanctions, US is aiming to reduce Iran’s oil exports to zero in a bid to curb the Islamic Republic’s missile program and regional influence. But the impact of these sanctions is havoc on Iran’s economy as a result of which now Iranian exporters are trying to export through those countries with which Iran has a bilateral trade agreement.

India-Iran bilateral trade

Due to sanctions and financial restrictions, Iran cannot trade in US Dollars (USD), but Iran is open to accept payment in rupee (INR) for oil. There is a possibility of bilateral trade between India and Iran but as of now India has been exempted from US Sanctions only for the purchase of crude oil.

Billet export prices in Iran drop due to fewer buyers

Billet export prices in Iran have dropped to around $410-415/t FOB levels on fewer buying interest. As market participants fear, the return of Chinese billets suppliers to the export market in recent week is likely to have further negative effect on Iran’s semi-finished steel exports.

Thailand remains top importer of Iranian billets

In calendar year 2017 alone, Thailand imported 1.24 MnT from Iranian Billets whereas Iran’s total billets exported were reported at 5.6 MnT. This year CY18 till October, Iran’s billet exports have reached 5.76 MnT out of which Thailand has already imported more 1.29 MnT of billets.

 

 

Comments:

Leave a Comment:

   
   
   
 

President: Sanctions Driving Iran towards More Development

Iranian President Hassan Rouhani said on Saturday that the US’ unilateral sanctions against Tehran have helped his country as the pressures push the nation to work harder and replicate embargoed products and items.
 

S. Africa after Bypassing US’ Anti-Iran Sanctions through Small, Medium Enterprises

South African Ambassador to Tehran Vika Mazwi Khumalo said that conducting trade exchanges through small and medium sized economic enterprises can help the two countries bypass the US unilateral sanctions.
 

Condensate Buyers May Shift Focus to Qatar From Iran

Qatar's ultra-light crude oil grades bore the full brunt of the recent return of Iranian condensate supply, with spot differentials for deodorized field condensate hitting multi-year lows, but uncertainty over the renewal of Iranian sanctions waivers could prop up the Qatari grade in the near term.
 

US sanctions pull plug on Citgo Aruba project

A $1.1bn Venezuelan project to refurbish a mothballed refinery on the Dutch-controlled island of Aruba has derailed because of US sanctions on national oil company PdV.
 

Iraq Rebuffs US on Cutting Off Energy Purchases from Iran

The US is pressuring Iraq to stop buying energy from its neighbor Iran, in what has become a major point of conflict between Washington and Baghdad.
 

Hindustan Petroleum Says Could Buy 0.9 Million Tons of Iran Oil

India’s Hindustan Petroleum Corporation Limited could buy 0.9 million tons of Iran oil in its 2018/19 financial year, said Vinod S Shenoy, the company’s director of refineries.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners