Billet
Billet price was upward during last week in Iran. Size 150 mm was heard at USD847/mt or higher and some transaction at USD855/mt including 4% VAT on truck in Anzali. Domestic billet which is mostly size 120 mm, was around USD811-829 /mt depending on producer and place of delivery. Billet market upward trend has influenced domestic scrap prices too. Seasonal shortage of scrap due to cold weather will make it hard for billet producers buying scrap.
Besides, billet producers are clearly in lack of liquidity as they are working at lowest capacity. Price volatilities of current weeks have affected these producers heavily. Despite higher billet price and better sentiment in sections market, billet producers prefer to transact more cautiously. As a result deals were done at low tonnages, 1000 MT or lower. In import market LC opening and shipment problems have made importers cautious
Long products
Long products market was upward during second week of 2012. Some products prices were upward by more than 10%. Price of debar diameter 8-32 mm increased from USD885/mt to USD988/mt from INSIG mill in Ahvaz market including 4% VAT, which shows around 12% rise. Debars diameter 14-25 mm in Isfahan market were 10% higher to USD1000/mt at the end of the week. Angle and channel prices were upward by USD9-45/mt on daily basis. As inventory levels were low, the upward trend made traders active and increased inventory levels, especially in Tehran market.
Market participants expected that Isfahan Steel supply in IME on this Monday will make package of debar and I-beam price higher to around USD1158/mt, so sales levels were upward till end of the week. At the end of the week by some drops in exchange rate, long products market was full of ambiguities. During last week exchange market was almost stable and didn''t influence steel market so much but problem of opening LC and payment problem for importing was more obvious.
Upward trend in sections market made market participants cautious, as the increase in prices is obviously due to higher costs not real demand. When buyers stop inventory buildings, as during last months of the year real demand is low, market would face a quiet trend.
Flat products
Last week flat products market was full of ambiguities and stagnancies in Iran. 2 mm HRC was priced at USD855 -864/mt on truck in Anzali including 4% VAT at the beginning of the week, it increased to USD936 /mt by end of the week. Mobarake Steel Mill HRC thickness up to 15 mm, was full of ambiguities in price. By Sunday it was higher by USD9/mt, then by Mobarake Steel Mill low supply in IME, it market was not clear in trend.
Some seller were supplying in the market but with higher prices. Some of them stopped offering, waiting for a stable market. So by end of the week market prices were not clear at all. Market participants believe that HRC price should be higher than debar price.
If supply of Mobarake Steel Mill products continue these limited tonnages in IME. Iran Steel market would need importing flat products, so prices would increase. HRC thickness 20 mm and higher is in low supply in Iran so market will face price increases during coming weeks.
CRC market was very ambiguous. After rises in IME prices, market prices were changed but sellers by middle of the week as didn''t know the exact trend of the market, preferred to wait for announcements of their competitors. So traders were not aware of the exact trend of the market. HDG market like current weeks was upward, but sellers preferred to stay away for a more stable market.
Iran Steel Service Center