Billet
Iran domestic billet market experienced a sluggish market last week. Size 150 mm billet was priced at USD891-896/mt on truck in Anzali including 4% VAT. But long products market depression and lower billet demand from steel mills made it drop to USD887/mt. Domestic billet production is now working well as a competitor to import market as they are cheaper and supply level has decreased.
As last week was final week of the month and at least market would be active for 2 weeks due to New Year coming, market should not expect any change in billet demand.
Long products
At the beginning of last week sections market was upward for 2 days, but by Monday as Exchange rate dropped, it was downward, besides demand level was so low too. While debar average price increased by USD14/mt at the beginning of the week, it dropped from USD1071 to USD1059/mt by end of the week. It should be noted that producers didn''t change their prices last week.
I-beam price which was up by USD18/mt at the start of the week, dropped by USD9/mt till end of the week. Merchant bars were in the same trend. As billet market is stable and market is silent, any significant change is unlikely in coming days. Some market participants are optimistic about sections demand at the year end due to beginning of some construction projects.
Flat Products
2 mm hot rolled coil was around USD909/mt at the beginning of the week on truck in Anzali including 4% VAT. By Sunday prices became downward and reached USD896-900/mt by end of the week. Mobarake steel mill''s HRC was up by USD18/mt but dropped by USD4-9/mt till end of the week. Price of other producers didn''t change considerably.
In CRC market lower demand besides higher supply made it drop by USD18/mt and HDG price was stable.
Yet flat products market is facing big problem of LC opening for import, but low demand and New Year holidays coming is not allowing market real sentiment to be visible. Downward prices abroad and financial worry across the world is continuing and has increased ambiguities about future trend of the markets.
Iran Steel Service Center