Billet
Billet market was quiet during last week in Iran. 150 mm billet was priced at USD777/mt on truck in Anzali including 4% VAT but transactions levels were so limited. As the price gap between billet and long products is so low, Iranian mills are not interested in producing more. Although sections prices increased last week due to higher US Dollar exchange rate and rumors about high prices in IME, but still prices are not high enough for producer''s better profit margins.
As billet price has been rising from 3 months ago, suppliers know that cannot restock easily as the problem for opening LC has not improved yet. Regarding import price of USD710/mt cfr Anzali, cost price of billet would be USD820/mt including 4% VAT, so sections prices should be more than USD948/mt to be workable for producers.
By end of the week, the price gap between cash and 3 month billet contracts in LME made some Iranian traders worried. But it''s common as Russia is the biggest consumer of billet right now and from October to February, their construction activities will drop heavily due to cold weather.
Iran government should take a policy to reduce its dependency on import, as economic developments has dropped export levels in CIS, besides CIS producers are focusing on exporting value added products despite semi products. As a reason a significant drop in CIS billet export level is expected by next year. Latest import price of billet in Iran has been around USD730/mt cfr northern ports.
Long products
Long products market was upward during last week in Iran as:
1-A rise in IME transaction prices was expected
2-Billet price increased
3- Many mills have lowered their production and supply level
These reasons made speculators active in the market and improved the sentiment. As prices continued increasing, more buyers became confident about better sections market and more orders were done.
Debar price rose around USD24/mt to USD 872/mt. By Wednesday as IME prices were near retail prices, more participants expected IME prices to increase. Many market players were talking about USD 948 /mt for Isfahan Steel debar in IME.
I-beam price was upward too and increase around USD12 /mt per day in Isfahan. Angle price was up around USD10/mt and Channel around USD15 /mt upward.
Traders are waiting for IME trend in coming days. Also inventory levels have dropped due to Ramadan low activities in the market.
Flat products
Flat products market had a stable week. HRC 2 mm was around USD 872 /mt on truck in Anzali at the beginning of the week and experienced USD19 /mt rise during the week. Kavian Steel and Oxin steel products prices didn''t change during week 34. Although their supply level is so limited, demand level is scarce too.
Mobarake Steel increased its prices by around USD 95/mt. HRC 2.5-5 mm thick prices rose by USD38 /mt. Pipe and profile demand was low and didn''t let prices increase more.
HDG market was stable but its demand is low. In CRC market, limited supply of Mobarake Steel and low import level of last months has made some sizes scarce in the market. Market participants expect CRC price to pick up after improvement in demand during coming weeks after Ramadan.
Iran Steel Service Center