Billet
Iran billet market experienced a calm and stable week. Size 150 mm was priced at USD801- 806/mt including 4% VAT. Despite depressed debar market billet price didn''t drop as supply level is limited and prices have increased. Traders mostly are concerned about more limited offers from CIS suppliers, so move cautiously. Lowest transaction price for Billet sizes 125 and 150 was around USD735/mt cfr Anzali port.
Regarding freight rate rise at Caspian Sea which is almost twice compared with 2 months ago, any drop in billet price would be unlikely in short time. As scrap price has not decreased too, so any drop in October billet price of CIS mills for delivery of December – January is almost impossible. Producers prefer to decrease their production level, despite declining prices. In domestic market 120 mm billet ex-work price was around USD769/mt.
Long products
Long products market was downward during last week. Market was depressed and no buying interest was there. One of the reasons would be 3 trillion dollar bank defalcation which influenced steel market too.
I-beam was downward during last week like other sections such as angle and UNP and this trend continued till end of the week. The main problem of steel market during last week was lack of demand which itself hit a new record. Mills offers were not interesting In IME; a reason would be lack of liquidity.
China origin I-beam was USD880/mt cfr Southern ports, Debar USD 785/mt and wire rod was offered around USD810-830/mt cfr Southern ports.
Flat products
Hot rolled coil 2 mm thickness was priced at USD975/mt on truck in Anzali by the beginning of last week, but increasing supply level made it downward till it ended the week at USD951/mt. Offers from CIS exporters were around USD780-810/mt cfr Anzali. But CIS producers have finished selling November production too. Rise in import level will make HRC price drop in coming weeks. But it couldn''t be remarkable.
Other sizes of HRC were upward around USD5/mt. Oxin Steel stopped supplying by Monday due to maintenance work. Kavian steel offers at IME were limited and didn''t change the market trend. It has been heard that Mobarake Steel is considering a rise in prices and after that it will increase quantity of supply in IME. The rumor besides supply of 6-15 mm imported HRC reaching the market, lead to a USD5/mt drop in Mobarake Steel product. But it wouldn''t stay for a long time as import level is so limited and can''t change market trend.
HDG market was stable but some sizes of CRC increased by USD10/mt. Some colors of PPGI were up to USD1, 875/mt, but it''s likely to drop when new lots are available in the market.
Iran Steel Service Center