Billet
Last week billet market was silent in Iran. Despite low supply and no sign of lower price in foreign supplier''s offers, due to long products market depressed situation, billet is not in demand. As a result billet size 150 mm was transacted at USD820 /mt but finished the week at USD15/mt lower. Domestic 120 mm billet was USD770-780/mt. A reason for market depression was last week of the month and longer weekend. Another reason was depreciation of Dollar in Iran, but main reason for decline in billet price is lack of demand.
Long products
Last week sections market was downward due to lack of demand. Debar price was down till middle of the week, then rumor of increase in custom duty and reaching last level made the market a little improved and by Wednesday were back up to last levels. But customers were yet so cautious and prefer no risk.
Other long products such as I-beam, angle and UNP were down till middle of the week and improved after that. Market players were waiting for finishing long weekend. Billet price was almost stable and import level of first half of current Iranian year has dropped, so market players guess that base prices won''t change significantly.
During first 6 months of last Iranian year, more than 1.7 million tones of billet has been imported to Iran but during same period this year about 1.2 m tones has been imported which is almost 30% lower. Besides mills have decreased production level to the minimum, so it can be expected that limited supply help market to improve or at least make it stable.
Flat products
During last week, 2 mm HRC was transacted at USD938/mt on truck in Anzali including 4% VAT, but by Monday market trend improved and prices were upward to end the week at USD970/mt. In import market offers are so scarce. Generally during next half of every year, Kazakhstan producers have an important role in Iran market but yet they are out of market. A 150,000 tones parcel of Ukraine 2 mm HRC was being ordered for December- January delivery at USD760/mt fob basis, but as weather condition during December and January would be worse and besides limited purchases of last months, this transaction cant influence Iran flat products market but it has made offer price of USD800/mt on cfr basis to be stabilized for October orders.
HDG prices were downward last week but after Mobarake Steel increased its prices in IME, market sentiment improved and HRC with thickness under 5 mm was up by USD24/mt, thickness more than 5 mm by USD63/mt and CRC by USD44/mt. It helped base prices rise, but market prices were not increased as much as IME levels.
Besides Kavian and Oxin steel mills HRC prices were down by USD10/mt for some sizes due to import of same products from CIS by USD28/mt lower than domestic mills prices.
CRC market is facing inventory shortage, around 56,000 tones of it has been imported during last month and has improved inventory level but most of it has been sold. Depressed consumer markets doesn''t let CRC price to rise. HDG price has picked and offers from Indian suppliers last week made market prices calm in Southern ports but yet some sizes are in shortage.
Iran Steel Service Center