Billet
Last week billet market in Iran was calm. Billet Size 150x150 transacted at USD 690-695 per tone in Anzali/Amirabad including duty and VAT. Also billet size 120 mm of domestic products was offered at USD 690.- per m/tone in Isfahan. Since long products market was calm, billet buyers expected to buy at USD 10.- lower, But sellers resist and kept price firm since prices of foreigner suppliers was firm too. Volume of orders was not attendable.
During passed 4 months, supply of billet was near to it''s demand, so sellers keep the price. Billet size 150x150 mm is offered from CIS at USD 670-675 CFR Anzali.
Long Products
Long product market price in Iran had downward trend, but it was about USD 10.- per tone, it is due to lack of demand. On Sunday 10th Jul, it was announced that government will inject USD 6.- billion for housing projects, but next day it become clear that it need parliament approval, so market collapsed. Many small mills are offering their product out of IME at low price for their need of cash. It is heard one order of 1000 m/tone debar concluded at USD 768.- ex-work. I- Beam price experienced collapse of USD 9-10.- per tone.
It is said that big quantity of I-Beam size 200 mm and up is on the way to Iran which will cause price of this product to reduce.
Debar''s offer price to south Iranian port was USD 750-770.- and I-Beam at USD 850-870.- m/tone.
Flat Products
HRC 200 mm on 9th Jul was USD790.- per tone including custom duty and VAT but at the end of the week, price increased by USD 10.- m/tone which was due to resistance of sellers not demand improvement. GI Coil had firm market in spite of low demand which it is due to supply shortage, also transacted volume were poor. CRC market faced catastrophic conditions, some lots of Mobarakeh products in thickness 0.70 mm up to 2.00 mm was offered at USD 835.- in Tehran market including 4 percent VAT and prompt delivery. Considering Sales price of this cargo in IME at USD 790.- m/tone, 4 percent VAT and bank interest of 2 month, this price is lower than purchased price. It is due that market for CRC is in terribly silent situation, also imported lots from Ispat and MMK is available. Now HRC price in IME offered at USD 580-618 m/tone, CRC at USD 790.- m/tone but debar at USD 745.- m/tone
Last year total flat product import for first quarter of Iranian calendar was 954213 m/tone, for same period of this year it was 576657 m/tone. It means 40 percent reduction in import but still market price is at same level of last year. It is just due to low demand and price freeze policy by government.
Since this situation is being continued, there won't be any optimistic view for future.
Iran Steel Service Center