Billet
Billet market was so confused during last week in Iran. Despite the fact that prices didn''t drop, sellers were not aware of the real trend of the market. Buyers transacted just for immediate needs, mainly due to exchange market ambiguities and LC opening problem. On Sunday last week, billet size 150 mm was priced at USD901-905 /mt but market participants kept waiting policy. By stagnancies in exchange market, billet price was up and till end of the week the market was ambiguous and didn''t change a lot as sections market was almost stable.
Traders are worried mainly about opening LC, so supply level of importers has decreased. Global prices have not changed a lot and billet is offered at USD650-660/mt cfr Northern ports, which after custom duties and exchange rate of 1USD/ 14,000 Rials, it would be USD 905/mt delivered at Anzali port. Any improvement in billet price is unlikely at the current situation. Besides during last months high tonnages of billet have been bought in import market which will be shipped to Iran in coming months.
Long products
Last week long products market trend improved after exchange rate increased. As producers supply level is limited, some market participants are optimistic about future but low demand level should be concerned. Expectation of 150,000 tones sections demand during last week in IME was not achieved and it was around 88,000 tones, near supply level of Isfahan Steel mill.
As debar price had increased during previous weeks, and I-beam demand has dropped, it saw some decreases during week 03.
Average price of debar in Tehran was around USD1,038/mt and ex-work price was USD1,032/mt at the beginning of the week. Average price of Ahvaz origin 8-32 mm debar was USD1,021 /mt and Isfahan Origin 14-25 mm debar was USD1,037 /mt on Sunday.
I-beam average price for size 14-28 mm was around USD1, 025/mt which was almost stable but supply level was limited. Angle and channel price which were upward till the middle of the week, moved back by end of the week.
Last months purchases of debar at low prices will be delivered this month and will make debar market calm. But some market participants believe that as supply level is limited prices won''t drop. But it depends on mills, as in the last 2 months of the year they may increase supply level to get more liquidity. Main problem of the market is low demand level which has put traders on wait and see policy.
Flat Products
2 mm HRC was transacted at USD922-967/mt on truck in Anzali including 4% VAT at the beginning of last week in Iran. It was around USD931/mt on Wednesday, but sellers stopped offering. Mobarake steel mill HRC price increased by USD27/mt on Sunday and didn''t change till end of the week. Kavian and Oxin Steel mills productions prices were upward for some sizes up to USD18/mt. Generally market sentiment was confused and sellers worked very cautiously, besides demand level was low. As a result market was faced with lower transactions levels. HRC supply level for sizes up to 20 mm which is mainly supplied by Mobarake steel is limited.
CRC market was full of ambiguities; it was upward by beginning of the week and base price at USD1U152/mt including 4% VAT on truck in Anzali. Sellers were scarce and also buying level was low. As in the CRC buying industries price of finished products have not changed, so buyers prefer to deal on lowest possible level.
HDG market was stable at current high prices as the market is not ready to accept higher prices and making HDG from CRC is still profitable.
It seems that CRC and HDG prices have picked in Iran market, besides global prices has not changed significantly so any increase in Iran market prices is unlikely. During last 2 months price stagnancies have increased interest in import market, which the purchased cargoes will arrive in Iran at the end of current Iranian month (Middle of February). Also it should be noted that Iranian New Year coming will influence these products consumption.
Iran Steel Service Center