Billet
Billet market experienced a calm week as long products market was sluggish. Billet size 150 mm was around USD878-887/mt on truck in Anzali including 4% VAT. Transactions levels were limited at low tonnages and market was depressed. By middle of the week, market price was around USD883/mt.
By end of the week, after rise in exchange rate value, billet price was around USD896/mt including 4% VAT, and transactions levels were still limited as profit margins of re-rollers were low. Average retail price of debar after USD106/mt price gap between debar and billet, would be around USD1U015/mt , producers are gaining profit around USD9-18/mt which is so narrow for them.
Some buyers are looking for domestic billet which is by around USD18-45/mt cheaper than imported material. Though it can help domestic production, which can be a good news in current situation of low demand and depressed market.
Long products
Long products market was downward during last week in Iran and debar price dropped by USD14/mt, I-beam by USD27/mt and merchant bars by USD35-44/mt. By end of the week when exchange rate increased, prices were up. Average debar price produced by INSIG Co, increased by USD18/mt to reach USD1, 032/mt by Wednesday. In Isfahan market, debar price which was downward till middle of the week increased from USD 1,030/mt to USD1, 034/mt on Thursday.
Price of I-beam sizes 14-18 mm changed from USD984/mt to USD1, 024/mt including 4% VAT by end of the week. Market participants do not expect such rises to continue and believe it will be calmer around 5% by USD44/mt during coming weeks and market will accept it as a correction as mills have no profit at current levels.
As global billet prices are downward and Iranian buyers demand is low due to New Year coming, any significant rise in long products prices would not be logical. Market participants prefer to wait and watch the market to see how much billet would be imported till the New Year at what exchange rate to have a better description of market sentiment.
Flat products
Flat products prices were downward during last week in Iran. 2 mm HRC started the week at USD891/mt on truck in Anzali including 4% VAT, and then dropped to USD874/mt in some northern ports on Monday, then market sentiment changed and prices were up to USD900/mt including 4% VAT. But of course it was not due to better demand. Oxin Steel and Kavian steel prices didn''t change considerably.
CRC market was down by USD18-62/mt due to high import level from Kazakhstan and higher supply of Mobarakeh Steel in domestic market.
HDG market was downward too, for some sizes up to USD89/mt. Demand level was scarce, so sellers accepted to give discounts on transactions. Seasonal factor and New Year coming won''t let CRC and HDG market to improve in near future.
Iran Steel Service Center