Billet
Billet market experienced a sluggish week in Iran. Size 150 mm billet was offered at USD755-759/mt on truck in Anzali port including 4% VAT, but no buyer was interested. In global markets billet price has reached the bottom and is about USD650-660/mt cfr Northern Iranian ports. Sections market depression can be the main factor behind this trend.
At the other hand, sections production level has been declined, so domestic billet can support long products mills needs. At the current situation, Iranian billet producers can increase their production capacity. Their scrap consumption which is about 3.7 m tones per year can be achieved by increasing HBI production level. Though billet producers should use this opportunity to increase their market share.
Long products
Sluggish market at the last week of the month was combined with religious holiday and made week 46 very calm. Debar price was downward but just dropped around USD10/mt as It has reached the bottom, so producers cannot afford more declines. Besides no investor is interested in debar market. Warehouses inventory levels have dropped significantly compared to last Iranian month. Buyers prefer to make deal just for their immediate needs.
I-beam price was downward too. Just size 27 mm price increased due to lower supply level. Angle and channel price fluctuate a little. Market participants believe during next Iranian month, market sentiment wont be positive as demand level is so low and seasonal factor besides religious mourning of next month will add to market sadness.
At the moment there is no positive sign in the market and higher production level would be impossible. But higher exchange rate and limited import level would help market prices increase when religious mourning of coming month finish.
Flat Products
2 mm HRC was priced at USD891/mt on truck in Anzali including 4% VAT and fluctuated a little during last week. By end of the week, due to high supply level of Mobarake Steel mill and lower import prices, price of thickness 8-15 mm were downward. Imported 8 and 10 mm thickness HRC were under USD861/mt on truck in Anzali including 4% VAT.
Global prices are downward and domestic supply level is increasing, so this downward trend will continue. For thickness of 15 mm or higher as Oxin and Kavian Steel mills supply level is low, prices were unchanged. 15 mm HRC from Oxin steel is very low of supply but when Chinese parcels arrive, low demand will end in drops in its price.
Last week CRC was the only flat product with upward trend. Supply level was low, especially for thickness of more than 1 mm at the end of the week. But it has been heard that around 35,000 tones of CRC has been arrived at Northern Ports but some problems in custom office has influenced supply level. As a result Mobarake Steel CRC would be in good demand during coming days unless the imported parcels be released to the market.
HDG price was affected by rise in CRC price and became upward, but demand level of CRC and HDG is limited in Iran and buyers just look for their immediate needs. Limitation for buying by LC payment from Mobarake Steel is being solved but supply level of CRC won''t increase till the end of current Iranian year ( end at 19 March 2012) as import market has LC problems too.
Iran Steel Service Center