Billet
Billet price was downward during last week in Iran but in a slow pace. Billet size 150 mm dropped by USD10/mt to around USD719/mt, by middle of the week it reached USD716 and was again up and finished the week at USD721/mt on truck in Anzali port including 4% VAT.
Regarding devaluation of exchange rate and lower sections demand, and also downward offer prices by foreign suppliers, any rise in billet price is unlikely in coming days.
It should be noted that billet import level during last Iranian month (22 May- 21 June) dropped by 24% to 277,787 tones against 298,470 tones of a month ago.
As due to sanctions against Iran, importers have limitations in banking affairs, level of import will continue to decline.
Long products
Lat week sections prices were downward and reached the bottom. By end of the week despite depression in the market, prices became stable, and no seller was in hurry to give a discount.
It’s expected that long products prices be stable during coming weeks as demand level is low and billet price is downward. Traders prefer to hold wait and see policy as by selling at low prices they would loose money.
Around 82,000 tones of debar was transacted in IME during second month of the current Iranian year (21 April -20 May) but it increased to 202,000 tones a month later. During second month of the year 207,000 tones of mixed parcel of debar and I-beam was transacted in IME but dropped by 25,000 tones a month later. Meanwhile, transactions volume of I-beam during the same period increased by 64,000 tones to around 68,000 tones in last month. Reports show that import level has dropped strictly and many buyers are interested in buying from domestic market. Reasons behind this include:
1-Banking problems for importing
2- More expensive finished price of imported sections against domestic products
3- Lower delivery time for domestic products against imported parcels
4-More limited credits for many imported materials
But the main reason for more interest in domestic market would be lack of demand and depression of the market. Traders prefer to buy just for immediate needs and hold wait and see policy.
Flat products
HDG price didn’t change during last week but due to limited supply the market was strong. Sellers preferred to stop giving discounts and tried to increase prices. Some imported parcels are in the way; despite its limited tonnage, it can influence the current stagnant market.
CRC market was downward, as a cheap imported parcel was supplied in Anzali port. CRC supply level in domestic market has increased but demand is limited. Something strange in CRC market is that Mobarake steel price in IME is equal to debar price, but normally it should be USD94- 141/mt higher than debar price. Current stable CRC market is not only due to level of supply or depression of market, but also due to government policy which has freezed the market price by not allowing Mobarake Steel mill’s price to rise.
In HRC market, Mobarake Steel increased its price by USD57/mt for 6 mm thickness but low demand didn’t let market prices to change. Kavian Steel and Oxin steel prices were unchanged last week. In HRC market price of lower than 6 mm thickness is cheaper than 6 mm or higher HRC because of Mobarake Steel supply level. But meanwhile thickness 2.5-4 mm has more demand against 10-15 mm HRC.
Price of hot rolled coil 2 mm thick, changed a little last week. It dropped by around USD10/mt to USD826/mt on truck in Anzali. Its price won’t drop during coming days as it seems exchange rate has reached the bottom and in foreign markets, HRC price is just USD20/mt higher than domestic prices.
Iran Steel Service Center