Billet
Billet market experienced a calm week and prices were downward but slowly. 150 mm Billet was priced around USD 800-809/mt including 4% VAT at the beginning of last week.
There are 3 main reasons for the downward trend such as:
1- Stagnant long products market and negative sentiment
2- Downward prices in global markets
3- Drop in exchange rate to as low as IRR 12,000/ US$ and lower
These factors made billet price down to USD795/mt during last week. By end of the week exchange rate increased but a rise in billet price is unlikely, as sections downward demand has made mills prefer buying billet from domestic mills at USD 762- 767/mt ex-work. The gap between domestic and import prices would end in continuous drop in sections prices and consequently imported billet.
Long products
As exchange rate is a main factor influencing billet price, dropping exchange rate has made sections market very silent during last week in Iran. Meanwhile constructions projects are facing limited liquidity, which would be a policy for controlling inflation by government but has declined sections demand. Surely production cuts would be an outcome of the policy. Prices were dropping but didn''t help demand. I-beam price was around USD12-15/kg down at the beginning of the week and this trend continued till end of the week.
Debar which was averagely USD880 /mt including 4% VAT dropped by USD10 /mt but demand level didn''t improve.
Steel market participants had been waiting for better demand in second half of current Iranian year, but due to current situation it is impossible, besides winter is coming and construction activities would decrease. Some participants are hopeful about coming months as import market is facing limitations and supply demand balance would help market improve.
Flat products
2 mm HRC was offered at USD960 /mt on truck in Anzali including 4% VAT by beginning of the week, but demand was weak and exchange rate downward. Its price reached USD946/mt at the end of the week but yet demand was low and transactions level limited.
Domestic mills HRC products were downward by around USD10/mt. HDG price for 0.50 and 0.60 mm thickness due to low supply level was upward. It was up around USD38/mt . Meanwhile 1.25 mm thickness is in low supply but its price didn''t change.
CRC market was in very low demand. Thickness 0.80 mm was offered at high levels in Anzali. A Ukrainian origin parcel made market so calm.
Flat products import market experienced downward offers from foreign suppliers. HRC 2 mm thickness was offered at USD750, CRC at USD800-810 and Hot rolled plate at USD780/mt cfr Northern ports. Exchange rate drop made HRP price drop from USD941/mt or more at last weeks to USD927/mt including 4% VAT and custom duty.
Iran Steel Service Center