Billet
Last week billet market faced with some fluctuations. For 150 mm billet, sellers were insisting on USD725/mt on truck in Anzali port, including 4% VAT, but buyers looked for USD5/mt discount.
Sunday holiday made market more silent and this trend continued till middle of the week. Then 150 mm Billet price reached USD721/mt and some deals were done on USD719/mt including 4% VAT to be delivered at Nowsahr or Amirabad ports. It rose again till end of the week and finished at USD725 /mt again. The reason behind increasing billet price is USD10-15 rise in import offers which were USD685-690/mt cfr Northern ports during week 29.
During last 2 months, billet import level has dropped due to different factors including price gap between domestic and import market, sections market depression and the main reason would be difficulties in negotiation of letter of credits. If the current market trend continues, some billet price increase is expected during next weeks.
Long products
Long products market was downward by beginning of the week. Debar average price dropped by USD5/mt, I-beam sizes 14 and 22 mm were a little up but other sizes were downward. Merchant bars were down by USD5-24/mt.
Downward trend was in sections market during last week as demand is low, Sunday holiday made market closed, and like every end of the month shortage of liquidity made market stopped. But by Thursday some signs of better demand appeared.
As debar price has reached the bottom and deals have no profit for traders, some improvements in debar price is likely, but I-beam price has recorded high levels, so it wont increase more in coming future.
Flat products
HRC price experienced about USD15/mt drop to reach USD830/mt on truck in Anzali including 4% VAT. Mobarake Steel, Kavian and Oxin Steel products prices didn’t change as supply level was so limited. Any price decrease is unlikely for them in coming weeks.
CRC market was silent. Some Kazakhstan origin parcels which were being offered at USD863/mt including 19% custom duty and VAT made market more depressed. HRC and CRC prices were downward in global markets and have reached the bottom. Iranian buyers demand is limited so any uptrend in prices is unlikely. Meanwhile in HDG market limited supply level has supported price levels.
HDG import offer is USD980/mt cfr Northern ports. Market participants say Ramadan is coming and current market depression will make market improvement unlikely during next month. Some participants believe prices will rise, as summer holidays in Europe are ending and when global markets became more active prices would rise.
It’s considerable that during first quarter of current Iranian year (21 March- 22 July), flat products import level has dropped by 28% compared with the same period of last year and it would influence price levels during coming months.
Iran Steel Service Center