Billet- Nothing different happened
Last week, Iranian billet market was stable. Billet size 150X 150 mm was transacted at USD635/mt on truck including 4% VAT in Anzali Port. Also there were some offers at USD633 /mt in the market, but limited deals were done. Billet size 125X125 was priced at USD645/mt and didn’t change during the week.
By middle of the week, some leader suppliers stopped offering, as CIS billet offer price appeared to be increased, but due to shortage of demand, nothing different happened in the market.
Stable sections prices at Tehran Metal Exchange ( TME) and its sluggish market has hold billet demand at the lowest level.
In import market, offers are around USD650/mt cfr for billet size 150X150, but Iranian customers are bidding for lower prices at around USD620/mt.
Long products- Short-term sentiment, depressed
Last week in Iran sections market, debar price was downward, I-beam almost stable and UPN price, especially sizes 160 and 180 mm were up.
Market current trend shows that in the coming months, sections market won’t change significantly. Government policies do not let prices rise and producers can not decrease prices more due to production costs. At the current situation mills have to cut production level.
Though when construction projects become activated in next month and make sections demand higher, supply shortage would appear in Iran domestic market.
Flat products- supply level up
Last week large amount of flat products were available in domestic market and this made prices decline. At the beginning of the week, parts of market inventories went to trader’s warehouses for restocking, but market prices were pressured as many suppliers were available in the market. By the end of the week, shortage of liquidity stopped restocking and market was depressed.
Hot rolled coil price at the begging of the week was USD713/mt on truck in Anzali including 4% VAT, and up around USD 5/mt but finished the week at last week’s level.
As three main producers, Oxin Steel, Kavian Steel and Mobarake Steel, were supplying in the market, HRC price was in pressure and size 15-30 mm dropped by around USD20/mt during the week.
CRC market prices were down about USD10-20/mt compared with last week, but shortage of demand was visible.
Just in HDG market, suppliers tried to increase prices but market depression didn’t let them to do so.
In Iran flat products market, supply level is too high, though, any price improvement is unlikely. Just higher level of transactions can help the market.
Iran Steel Service Center