Billet
Billet market was stable in week 32. Its supply especially for size 150 mm was limited in Anzali port, but demand was scarce too. Ramadan sentiment besides production stoppage at many mills has lead to significant drop in billet demand. Some billet consumers has changed their way of production and need 150 mm billet in spite of 100 and 120 mm billet. So demand for size 150 mm has increased and its price is higher than the other sizes. At the beginning of last week, 150 mm billet price was USD735/mt and increased by USD5/my till Wednesday but after exchange rate increase, suppliers stopped offering. Size 125 mm was offered USD707/mt in Imam Khomeini port and USD731/mt on truck in Anzali including 4% VAT.
Two factors can change billet market sentiment in the future:
1-During last 3 months cost price of imported billet was higher than its retail price and can make import supply decline more.
2- Russian producers are focusing on exporting value added steel products despite semi finished products, so billet supply has decreased. Some decline in billet price is expected for coming months.
Long products
Debar price experienced a calm week because of 2 main reasons including:
1-Debar price has reached the bottom. Due to high billet price, not only no mill can decrease debar prices more, but also producing debar at this costs is impossible.
2-Debar supply level has dropped significantly and it seems that 3 mills are going to stop working.
I- beam market was stable last week and merchant bars prices declined a little. By Wednesday when exchange rate increased, some sellers stopped offering, some mills increased prices just by USD10/mt and some others tried to increase sales by offering at low prices.
General sentiment of the market is stability till end of Ramadan. But in import market prices are stable, I-beam is being offered at USD875/mt cfr Southern ports, Billet at 695-705/mt cfr Northern ports and debar at USD770/mt cfr Imam Khomeini port. Besides, problems in negotiating and paying for LCs has not finished yet.
Flat products
Flat products market experienced a quiet week. Market participants expected to see declines in HDG market but it didn’t happen. HRC and CRC market was silent and higher exchange rate didn’t influence these markets too.
At the moment market is silent due to Ramadan sentiment and besides many flat products consumers are not working and this has made the market more depressed.
Currently, Mobarake Steel is supplying flat products but at limited tonnages and import offers are limited too, but nobody can forecast what will happen in the market after Ramadan in September.
In HRC market supply level is dropping. 2 mm HRC price last week increased by USD10/mt to USD873/mt including 4% VAT on truck in Anzali due to higher exchange rate not due to demand improvement.
Iran Steel Service Center