Billet
Last week billet price was down by around USD10/mt in Iranian steel market and transacted at USD800/mt on truck in Anzali including 4% VAT. But transaction level was so limited and offering parcels were lower than 1,000 tones. Long products market is depressed and despite its lower prices, billet market is almost stable, so the offering tonnages are limited.
In global billet markets, slack demand and downward scrap price is depressing billet price. Import offer is around USD680/mt cfr Anzali. Meanwhile as domestic demand is scarce Iranian importers prefer to stay out of import market. It should be noted that domestic ex-work price of billet is USD771/mt and during first half of current Iranian Year 1,311,413 tones of billet has been imported, which has been down by 30% compared to same period last year.
Long products
Sections prices were downward during week 41 in Iran. Besides, domestic mill have decreased supply level, but it didn''t support prices. Delivery time for debar of some mills is about a week, which shows their cuts in production. Producers in private sector have declined production level to the minimum, but yet demand and supply are not in balance.
Traders mostly prefer to have inventory just for a week as are worried about market sentiment. Some market participants are positive for improvements in market till next weeks. They believe that low supply level and exchange market depressed situation will increase investment opportunities in steel market. The only factor which would make long products market stay at these levels or drop more, would be billet price decrease.
Flat products
HRC 2 mm thickness was around USD933/mt on truck in northern ports last week, down by USD10/mt compared to a week ago. Lower price is due to higher supply level as during last Iranian month ( 23 Aug-23 Sep) HRC import level increased by 28,263 tones compared to a month ago and reached around 190,000 tones. But import level of current month seems to be lower than last Iranian month. Cash payment price in import market is USD750/mt cfr Northern ports, but financial problems have made transactions level limited.
HRC thickness 8mm or higher dropped at least USD10/mt. Oxin and Kavian Steel products prices dropped too. Supply level is so limited but Lack of demand made supply drops useless. Besides, lower offer price of china origin debar at USD800/mt cfr Bandar Abbas has made traders more cautious and prefer to de-stock inventories and wait for a clear sentiment for more purchase.
HDG price drop by USD10/mt due to lack of demand. CRC market situation was the same as demand is low and import prices are dropping too.
It''s expected that current sentiment in flat products market won''t change in short time. Global prices are downward and no hope for better demand in Iran.
Iran Steel Service Center