Billet
Billet market began week 17 with a stable trend, size 150X150 was priced at USD632/mt on truck in Anzali including 4% VAT, and about USD608-610/mt in Imam Khomaini port.
But on Monday, market prices edged down and some transactions were done at about USD2/mt lower. By the end of the week transactions level was scarce.
In import market, CIS origin billet was offered at USD635-640/mt cfr Northern ports, but sluggish sections market has made buyers out of the market.
Long products
Long products market experienced a depressed week and prices were down by the beginning of the week.
Isfahan Steel rebar, size 14 mm and higher, was priced at USD 780/mt in Tehran market, after all the costs including VAT. At this price, traders will lose at least USD5/mt.
In Tehran Metal Exchange (TME), debar and I-beam were sold together in mixed parcels, so traders were hopeful that I-beam profit would offset rebar lost. But increasing supply of I-beam besides lack of demand, made I-beam price downward too.
As a matter, it’s expected that level of transactions in TME would decline strictly. Current market situation is squeezing margins for re-rollers very hardly.
During last week there was a rumor in the market that government will allow price of sections to be increased by 5% in IME and it improved market sentiment but all the market participants don’t expect this happen.
The current market situation will lead to cutting production levels, unless government does something to stimulate demand.
Moreover, other long products like angle, UNP and H-beam were almost stable last week and prices fluctuate around USD5-10/mt.
Flat products
Flat products market was silent last week and prices were downward. Producers were supplying in the market most of the week. Mobarake Steel’s CRC was offered by distributors at 300-500 tones parcels from warehouses. But by Wednesday, supply level dropped and market participants are waiting for higher supply of leader mills in coming weeks.
At the moment, in flat products market supply- demand level is imbalanced and every one is in lack of liquidity.
In domestic market, HRC 2 mm thick was almost stable during week 17, at USD713/mt on truck in Anzali, including 4% VAT. In import market, prices were unchanged compared with a week ago, but would drop in coming weeks, when Kazakhstan suppliers increase offer levels.
Iran Steel Service Center