Billet
Iran billet market was so volatile during last week. At the beginning of the week market was still depressed at about USD 763/mt but by Sunday in line with exchange rate upward trend, billet price increased. Sellers stopped offering and consumers in urgent need bought just in limited tonnages. By Monday, billet size 150 mm price was around USD795/mt including 4% VAT in Anzali.
Market became almost stopped as sections producers preferred to be out of market, just watching the market for a clear trend. By middle of the week with government movement and exchange rate decline, market was completely quiet. These volatilities have made market participants confused. Billet price dropped again to under USD763/mt in Anzali as buyers avoid transacting and sellers holding wait and see policy.
By week ending, market became clearer and billet was priced at USD763-768 /mt, yet both parties very cautious.
Long products
Long products market experienced an upward trend last week. Debar price by INSIG Co, for 8-32 mm diameter, was averagely USD854/mt ex-work but finished the week at USD886/mt. Debar price diameters 14-25 mm in Isfahan market increased from USD864/mt to USD893/mt during the week. Average I-beam price for sizes less than 20 mm dropped by USD9/mt but sizes 22 mm or higher increased due to low supply.
By Sunday, when exchange rate surged upward, big traders mostly stopped transacting, so prices were upward. By middle of the week in angle and channel market no seller was offering, also in I-beam and debar market in Isfahan. By Wednesday when exchange market was calm, traders started offering but at higher prices as ex-rate was not stable. Exchange rate volatilities made steel market very stagnant during first week of 2012 in Iran.
Flat products
2 mm thickness HRC was offered at USD852 -857 /mt by beginning of last week in Anzali incuding 4% VAT. But by exchange rate volatility it reached to USD889/mt and then down to USD875-879/mt by end of the week.
CRC market started the week upward, by Monday nobody was offering, but by Wednesday sellers came back and prices were almost unchanged compared to Monday. CRC market is facing shortage of supply. Import level is limited due to credit opening problems, so supply level would be limited during coming months, unless Mobarakeh Steel mill increase supplying in IME.
HDG market has been facing limited import level during last months, so it is upward. Exchange rate and LC opening problems are serious in this market too and if the trend continue, it would be very serious in the Iranian New Year ( 20 March 12 upward). At the moment China is the main supplier of the material in Iran and if Iranian government make easy LC opening affairs with China, it would be helpful for Iranians as Chinese prices are downward too. But at the moment Iran need a third country like UAE for opening LC which is facing problems every day.
Iran Steel Service Center