Billet
Billet price was about USD9/mt upward by beginning of last week and priced at USD962/mt on truck in Anzali including 4% VAT. By Monday it reached USD970/mt ex- warehouse in Anzali. Market fluctuated to about USD 957/ mt and was up again by end of the week.
In global markets billet price has increased due to scrap price rise but in Iran domestic market, traders prefer to be out of market as they cannot re stock after selling and mills are in year end mood. Yet there are difficulties for opening LC in import market, despite government is trying to solve the matter.
There are a lot of ambiguities regarding opening LC and import registrations in import market. Some traders has opened LC in Russian Ruble, but the procedures regarding changing Ruble to US Dolor or the way of payment to mill has not become regular, so it needs some time at least till end of April to be more workable. After opening a few LCs in Ruble, billet market trend will be calmer. If so, billet price will drop in coming Iranian year. If it stays up, re-rollers will face high production costs.
Long products
Long products market was almost stable during last week. Downward trend of begging of the week was recovered by increases at the end of the week. Debar and I-beam were in the same trend but some sizes of angle and channel had a tight market.
Downward prices of debar and I-beam have a clear reason. At end of every year, demand of big construction projects drops. Besides, supply level has increased.
Generally market participants are optimistic about future trend due to 2 main reasons. One reason would be start of second phase of reforming subsidies plan and the other is empty warehouses and low supply level in the future.
General logic of the market is that upward costs will make prices upward so some big traders are trying to buy needed stock for next year during this month before New Year holidays begins.
Flat products
HRC 2.5 mm thickness was priced at USD918/mt on truck in Anzali including 4% VAT and fluctuated by USD9/mt during the week. Some sizes had limited availability but generally HRC market was calm. Import level of 2 mm HRC has been increased during last months, and mills will stop supplying in coming weeks of year end, so any significant change in flat products market is unlikely.
Last week HDG market was downward. Price of some sizes dropped by around USD27/mt but CRC market was upward each day but in limited margins. Some sizes are in shortage and importing CRC at current prices is not affordable, traders stopped buying in current months. Supply level is limited but market is calm due to year end sentiment.
Generally market participants are waiting for higher flats prices and more tension in the market, if government does not work on making market trend clear.
Iran Steel Service Center