Billet- Surging upward
Sudden surge in sections prices made billet price upward last week. Many sellers stopped offering as they were expecting more rise in prices. Though, billet size 150X150 mm price rose around USD 38/mt during week 20 in Iran. Billet size 100X100 mm was priced at USD758/mt, but no deal was done at these prices.
By the end of the week, as long products market sentiment became clearer, billet price stopped surging upward.
Meanwhile, foreign suppliers had a successful week in Iran market. 150X150 mm billet which was offered at USD655/mt cfr Anzali port in week 19, was up by USD20/mt during last week. Russian billet was offered at USD680/mt fob Black Sea and Kazakhstan billet was heard being offered at USD640/mt fob Aktau. But these are just market rumors not exact announced prices.
It’s expected that billet market would become stable during coming week, as sections prices are peaked and would stop increasing.
Long products- Prices at the peak
Last week long products prices peaked. By Sunday Isfahan Steel mixed cargo of I-beam and Debar was transacted at USD760/mt, which the final cost price for the buyer would be USD 853/mt including 4% VAT. The next day finally market participants were announced about the deal being done. This made prices surging upward and increasing demand in TME. By end of the week Ahvaz Steel debar price reached USD774/mt in TME but the mill supplied in limited tonnage.
Average buying price of debar at TME was higher than USD778/mt including 4% VAT which means its base price wont be less than 815/mt including VAT in next week. Last week market trend was unexpected, prices increased every day between USD5-24 /mt and it was up from USD820 on Sunday to USD868 on Wednesday.
I-beam market situation was the same and finished the week at USD1, 042/mt and higher. Angle and UPN were the same, increased every day.
The reasons behind last week sudden surge in prices include upward billet price and rise in sections prices, so made investors interested in long products market. But it should be noted that cheap cargoes bought during February and March will reach the market very soon and higher supply in TME will make the current stagnant demand worse. At the current prices, many buyers would leave the market and in the coming weeks traders market won’t be good. Prices will be down at the end.
Flat products- More rise in prices coming
Flat products market was upward during week 20 in Iran. HRC 2 mm price increased around USD66/mt during the week and was around USD787/mt at the end of the week in Anzali including 4% VAT.
Kavian and Oxin steel mills HRC was up by USD48/mt, as they stopped supplying in TME.
Traders are not confident, so refuse to sell unless be sure about restocking material available. This is the main reason for upward prices. Mobarake Steel HRC had the same situation but market of CRC and HDG was almost stable. Market players are expecting a price rise for these products too.
Mobarake Steel sales policy in TME made this happen. Last week the supplier announced that any potential buyer is allowed to buy just 110 tones of Mobarake steel products.
At the current situation, importing HRC at USD750/mt, CRC at USD775 and HDG at USD910/mt cfr Iranian ports would not be cost effective for Iranian traders. At the other hand in coming 4 months, market will face supply shortage.
Iran Steel Service Center