Billet
Billet market was upward during last week in Iran. Price of billet size 150 mm increased from USD 926/mt to USD966/mt on truck in Anzali including 4% VAT. Sellers were not interested in transacting due to limitations in importing and ambiguities regarding opening LC. During last 2 Iranian months billet import level was downward and it''s unlikely to improve.
Market participants are waiting for billet price to reach USD1059/mt. The only reason for current calmness in the market is New Year holidays coming in less than a month and mills production programs. Domestic product billet was priced at USD891-909/mt depending on size and quality. Besides, imported billet price has been stable at USD650-670/mt cfr Northern ports.
With new limitations for importing billet, the market''s ambiguities has increased and after New Year holidays, billet market will be more apparent in sentiment.
Long products
Long products prices were upward during last week. Average price of debar of INSIG Co in Ahvaz was up from USD1040 to USD1058/mt including 4% VAT. In Isfahan debar price increased from USD1049 to USD1095/mt. Angle and Channel were upward too. For some sizes prices were up by USD27/mt in a day. The upward trend is due to billet higher price and limited domestic supply. At the current situation, many mills specially re-rollers, are thinking of closing production lines sooner than every year end as biller and debar difference in prices is not workable for them.
Billet price has reached USD971/mt in Anzali but debar average price is USD1059-1077/mt ex-work. Besides there is some rumors in the market about implementation of second phase of removing subsidies will begin soon, which means 30% higher production costs for steel producers. Steel mills are worried about market situation after this plan begins. If government continues the policy of freezing prices at IME, many mills will face bankruptcy.
Flat products
2 mm HRC was offered at USD900/mt on truck in Anzali including 4% VAT. By middle of the week, prices were upward and reached USD927/mt by end of the week. Other flat products of Mobarake Steel were almost stable in prices. Kavian Steel and Oxin Steel mill''s prices were unchanged. The main reason for current stable price of HRC is New Year holidays coming and lower demand and more supply of Mobarake Steel and Russian and Chinese products in the market. But market participants are waiting for some increases in price of HRC like other steel products current market trend.
CRC and HDG markets were stable too. Just 0.70 mm CRC was very limited in supply level and some shortage is expected for thicknesses of 0.80 and 0.90 during coming weeks.
Generally in all steel products market some rises in prices is expected due to limited supply level. Market is waiting for parliamentary election to see some more clear policy of government regarding economic situation of the country.
Iran Steel Service Center