Billet
Iran billet market was so sluggish during week 48. Exchange rate increased at the beginning of the week and some market participants became a little positive about improvement in billet market but sections market was so depressed and affected billet market. Billet demand is at the lowest level having been seen during currents years. This week market would be almost stopped because of religious mourning of Month of Moharram , so market participants preferred to keep wait and see policy.
As global prices were downward and economic crisis of Europe continued, importers are so cautious about future. Billet price was around USD752-754/mt on truck in Anzali including 4% VAT which was almost the same as a week ago. Domestic billet size 100 and 120 mm were cheaper by around USD5-10/mt compared to a week ago at USD729/mt ex-work. Besides, imported billet is priced at USD620-630/mt cfr Northern ports. But tight liquidity and sad long products market has made billet import market depressed.
Long products
Long products market depression has continued. Mills sale price has become near cost price or almost the same. In Iran Mercantile Exchange freezing prices is the main policy and many mills are cutting production at the current situation.
Average debar price for diameter 8-32 mm, was around USD849/mt in Ahvaz, 14-32m m diameter was about USD 851/mt in Isfahan and average I-beam price was USD1058/mt . Market sadness made some traders decline their prices more. At the end of the week Debar price was around USD846 in Ahvaz, In Isfahan around USD851 /mt .I-beam price was around USD1029/mt . But price decrease level was limited at USD5/mt for Debar and USD10/mt for I-beam. As prices have reached the bottom, they didn''t dropped more. Some traders believe when billet supply level decrease and if government allow prices change in IME, then sections market would see some improvements.
Angle and channel price were unchanged during last week in Iran, their markets were depressed with no demand. Producers believe production cut is the best solution at the moment as any drop in prices won''t help prices rise and just add to market negative sentiment.
Flat products
HRC 2 mm thickness was priced around USD867/mt on truck in Anzali including 4% VAT at the beginning of last week, but increased by USD23/mt a day later and finished the week at USD885/mt. In import market HRC is priced at USD650-670/mt cfr northern ports but transactions levels are limited so importers are cautious about future trend.
Imported HRC inventories at Anzali port has been finished but will increase next week. 3-15 mm HRC from Mobarake Steel faced some drops in prices, then by middle of the week sizes 10-15 mm were up by USD10-14/mt as prices have reached the bottom and sellers can''t afford that levels.15 mm Chinese HRC didn''t let Oxin and Kavian Steel mills use lack of supply to support prices. Kavian Steel was successful to fix prices by limited supply but HRP of Oxin Steel dropped by USD10/mt especially size 30mm. This would be the common trend of the market in coming weeks.
Mobarake Steel mill is giving market participants some confidence by HRC supply cut. If the leader mill fix its prices at current level, flat products market would stabilized and be balanced during next month. But if its prices decrease flat products market would be shocked. We cannot expect a positive sentiment for coming months as:
1- Lack of demand continues
2- Imported parcels are on the way to Iran
3- Chinese prices has been dropped so would hurt domestic mills competitiveness in the market.
4- Low demand in Europe has made CIS origin flat products offers to Iran market increase.
CRC market after 2 weeks of fluctuations was almost calm as imported parcels arrived. Price of Mobarake Steel CRC increased in TME and made market participants a little positive. Some sizes of CRC are in lack of supply and Kazakhstan suppliers have cut their price to USD720/mt cfr Iranian ports. So some buyers may be more interested in importing.
As CRC supply level was limited, HDG price rose a little. Its import price is around USD820/mt cfr Anzali.
The only chance of flat products market is problems for opening LC in import market besides Mobarake Steel supply level limitation. This may help CRC and HDG market sentiment clear in coming months.
Iran Steel Service Center