Billet
Billet market was silent last week in Iran. Sluggish sections market made billet demand dip more. But higher offer prices in global markets and limited supply of foreign sellers has lead to unwillingness of billet sellers in Iran to give any discount despite low demand.
Domestic billet production is gradually becoming more interesting for Iranian buyers. Current slump situation in steel market has made some steel mills focus on producing billet but it needs more support from government.
Billet size 150 mm finished week 30th by some fluctuations and was around USD720/mt on truck in Anzali including 4% VAT. Domestic product was transacted at 706 – 715/mt for size 120 mm. Import offer is prevailing around USD685-695/mt cfr Anzali but supply level especially from Russia is limited.
Long products
Last week long products market was so sluggish. Not only debar price was downward every day, but some drops were seen in I-beam, angle and UNP markets too. Main reason is lack of demand and it seems that it won’t stop in near future. Despite drops in the physical market, prices in Iran Metal Exchange were unchanged as producers’ cost price has not decreased.
When billet price is USD720/mt, debar price shouldn’t be lower than USD796/mt in IME. In the other side Holly Ramadan coming has made consumer markets closed. Imported debar is offered at USD757/mt on truck in Imam Khomeini port including 19% custom duty and VAT and consequently domestic mills product has no competitiveness in the market.
I-beam traders also have faced with Turkey origin I-beam at Sero Frontier at low prices and small tonnages and this influenced their market negatively.
At the end of the week market participants heard that Isfahan Steel will supply debar and I-beam in IME at USD1, 120/mt on 31 July, but market was confused by this news, as current sluggish market is not ready to accept any increase in prices.
Flat products
Like other steel products, flat products market was quiet last week in Iran. 2 mm HRC started the week at USD867 – 872/mt on truck in Anzali including 4% VAT but by middle of the week began dropping and finished at USD853-858/mt.
Flat products prices have reached the bottom and market inventory would reach the lowest level by the end of summer in Iran (around 2 month later). HRC market is strong and traders will gain some profit by selling it, but its supply level is limited. CRC market situation is the same, but low market prices has made traders not interested in buying , so deals are at small tonnages. In CRC market import supply is not limited, so prices are low. During Ramadan CRC market would dip more. HDG market has faced with lack of supply and its price has not changed.
In import market, CRC is being offered at USD750/mt and HRC at USD735/mt for 2 mm thickness, HRP USD800-830 and HDG at USD950-980/mt cfr Northern ports. As cost price of most of these products are higher than domestic prices, so import level is so limited and market participants expect prices to increase after Ramadan.
Iran Steel Service Center