Billet- Market will face some corrections
A strong week has been passed in Iran billet market. On Monday little discounts were offered by sellers and by Wednesday almost all stopped transacting, as Long products market was improving. Billet size 150X150 mm started the week at USD633/mt in Anzali, dropped by USD3 and then finished the week at USD647/mt on truck in Anzali port including 4% VAT and around USD622/mt in Imam Khomeini port but scarce transactions was done.
Many market participants do not expect the price improvement continue and forecast some corrections this week. Government policy about controlling sections prices is being followed strictly and it seems importing billet will begin in near future, so the market price won’t fluctuate heavily and global prices don’t seem to rise remarkably.
Imported offers are around USD635-650/mt cfr Northern ports but traders are not interested in buying.
Long products- prices up, but temporarily
Last week long products prices including rebar and I-beam increased by around USD10/mt , mainly because of rumors about 5% increase in list prices at IME ( Iran Mercantile Exchange) and fluctuations in IME prices. This trend helped the market to improve. In the other hand, Isfahan Steel mill’s limited supply level supported the rumor and increased market prices more. UNP market inventory is limited and angle price rose for some sizes.
Market participants expect the current trend to be temporary and believe price will come back to last levels this week due to low demand and depressed market. Also two other reasons are that:
1-Last 2 months purchases are available in warehouses and when prices increase, they will come to market and increase supply level.
2-Government policy for controlling prices won’t let it increase.
Flat products-Almost stable
Low demand and liquidity shortage made flat products market prices stable during last week in Iran. Last year imported inventories and high supply level of domestic producers has made prices unchanged. Just HRC 12-15 mm was up by USD5/mt because of Mobarake Steel limited supply.
Many traders are selling imported CRC at low prices due to Liquidity shortage. Kazakhstan origin CRC was heard transacting at USD859/mt in Anzali after custom duties paid which made importers loose around USD29/mt. Current offer of the material is USD750/mt cfr by cash payment but no traders is interested in buying.
HRC 2 mm thick was offered at USD 730/mt in import market but by the end of the week sellers stopped offering in Anzali.
Low demand and government policy for controlling prices won’t let flat products price change during next 2 weeks. Current problem in opening credit for Russia and Ukraine products via Dubai third party will be stricter in near future but at the moment government policy is supporting the market.
Iran Steel Service Center