Billet- prices downward
Last Saturday Billet size 150X150 mm was offered at USD730/mt on truck in Anzali port including 4% VAT, but no buyer was interested as market trend was pessimistic. During the week billet price was downward in Iran domestic market. Size 150 mm was transacted at USD685/mt at the end of the week. Also some deals were done at around USD3/mt lower.
This downward trend was due to reasons such as:
1- Long products prices were down
2- Market believed billet price has peaked
During 10 days, billet price peaked up and market was not ready to accept 15% increase in prices at such a short time.
Market participant had no confidence in market trend so hold wait and this made downward prices easier. At the moment after last week declines, it seems billet price has reached the bottom and won’t be lower than USD663/mt.
In import market, CIS origin billet was offered at USD660/mt cfr Anzali port but downward domestic market made buyers not interested in importing. It is expected that billet market price in Iran become stable during coming week.
Long products- sharp decline in prices
Debar price dropped by USD48/mt during last week in Iran domestic market. Generally long products market experienced a terrible week.
On Sunday big traders started offering in Tehran and Isfahan markets but nothing was supplied at TME till the afternoon.
Cheap orders of last month were injected to market. Small traders worried about more declines tried to sell at any price so this made sections market trend worse and prices dropped a lot. By Wednesday there was no buyer in the market and some big traders stopped offering to support the market trend. As a result prices dropped at slower pace and some sizes became stable.
At the end of week 21, I-beam price was lower than USD950/mt and other sections prices followed this trend. Price of Angle and UNP dropped by USD29/mt.
Market participants think that prices have bottomed and should be stable during next days.
Flat products- limited drops possible
HRC 2 mm was priced at USD805/mt on truck in Anzali including 4% VAT at the beginning of last week, but no deal was done. Prices started dropping and finished the week at USD768/mt.
From Monday, other sizes of HRC by Mobarake Steel dropped around USD10/mt per day.
Kavian and Oxin Steel mills HRC for 15 mm thick and up were not offered in the market but traders tried to sell more by around USD19/mt discounts. But By Wednesday they couldn’t sell anymore.
CRC and HDG price were up around USD10/mt at the beginning of the week but started decreasing by Sunday. Market is upset and any decline is possible but at low margins as supply is limited.
Imported offers for HRC 2 mm was USD750-760/mt and CRC at USD775-790/mt. Also HDG import offer price is around USD890-910/mt CFR Iranian Ports.
Iran Steel Service Center