Billet
Iran billet market was rather stable during week 24 as sellers tried to avoid volatility in the market. They didn’t give any discount due to following reasons:
1- Higher global prices and limited supply in import market
2- Higher sections prices in domestic market
3- Exchange rate stability
Most of the week, 150 mm billet price was around USD698/mt on truck in Anzali including 4% VAT. But on Wednesday after The Central Bank of Iran announce its policy for exchange rate control, billet price dropped by USD9/mt and suppliers stopped offering due to unclear market sentiment.
Billet market was quiet last week and every body preferred to hold wait and see policy.
Long products
Last week long products prices were upward in Iran. Producers’ supply level dropped and their sale policy was not clear, as a result debar price increased by USD27/mt, I-beam by USD18/mt and merchant bars by around USD53/mt.
Most of the increase was on Sunday when Isfahan Steel increased its prices and on Monday prices were peaked. Then government policy for devaluing exchange rate made market sentiment ambiguous and made it quiet. When controlling policy of exchange rate was clear, market became active again.
Generally last week long products market was in waiting policy and changed sentiment by any news. By end of the week a transaction was done in IME for debar at USD733/mt and market was interested in it. The transaction show that any drop in long products prices is unlikely this week.
Flat products
Last week Hot rolled coil 2 mm thick was up by around USD44/mt by middle of the week to USD828/mt on truck in Anzali port including 4% VAT. It finished the week downward at USD810/mt. Other flat products experienced the same trend during week 24 in Iran. But for Mobarake Steel products the trend was more obvious.
A drop in prices was expected, as after a rise traders tried to sell their cheap purchased parcels, so higher market inventory made prices down.
CRC price was up by USD61/mt during last week in Iran because of exchange rate and Mobarake Steel sales policy. Market participants had anticipated that Mobarake Steel product price would raise by USD88/mt in Iran Mercantile Exchange during last week but the rise was around USD23/mt. Importers can not have any profit margin by trading at the current prices. By the end of last week CRC price dropped due to increasing concerns about lower exchange rate. HDG market was faced with the similar volatilities last week.
By the way, flat products average price increased by around USD44/mt during last week in Iran market. Market participants do not expect prices to get back to previous levels as supply level has become more limited, exchange rate has valued and global prices are higher at the moment.
Iran Steel Service Center