Billet
Last week billet price was upward in Iran market. Price of billet size 150 mm increased from USD997 - 1006 /mt to USD1032 /mt on truck in Anzali including 4% VATat the end of the week. Market sentiment was ambiguous till Monday and it was expected to be stable due to lower demand of steel mills as it is year end. After sale of billet in TME market was upward and market participants are hopeful about more than USD926 /mt for New Year as a base price.
Imported billet was around USD1006-1023/mt after custom duty paid. Current market sentiment believes in higher prices and any stability or a drop in billet price is unlikely.
It should be noted that last Thursday, 150 mm billet was USD1,037/mt on truck in Anzali including 4% VAT, but possible deals at this price will be done this week.
Long products
During last week sections prices were upward. Debar average price for diameters 14-25 mm was around USD1109/mt but finished the week at USD1168/mt in Isfahan market. I-beam price also increased from USD995/mt to USD1,037/mt. Prices were up. On Monday buyers stopped purchasing. Mills continued rising prices and after 100,000 tone s of billet was sold at TME, market sentiment improved and prices became up again. Some mills has stopped offering or decreased supply level, so it made market warm.
Angel and channel prices were upward by USD9-26/mt each day as market sentiment was positive and participants are waiting for higher prices in New Iranian Year. Some traders hopeful about near future have started re stocking. Besides mills have decreased production level, so market has became warmer.
Flat products
2 mm thickness hot rolled coil price increased by USD26/mt during week 10th and reached USD944/mt on truck in Anzai including 4% VAT. Market participants look for USD970/mt and higher in near future. This week some big traders will stop business like every year end and mills prefer to have stock for New Year so, supply level wil drop and HRC price may reach this level. Limitation in import of HRC, has made the market so sensitive and when supply demand balance damage, surge in prices would be expected.
3-15 mm HRC from Mobarake steel were upward and increased about USD26/mt for some sizes. For sizes 15 mm and higher prices were up by USD18/mt. As there are imported stocks in Southern and Northern ports for theses sizes, significant price increase is unlikely.
CRC market was firm, especially for thicknesses 0.60-0.90 mm which their inventory level is dropping. Suppliers prefer to be out of market due to year end affairs, so prices will be higher. CRC supply level was limited by beginning of current Iranian year but in second half with limitation in opening LC, situation was worse. HDG price was upward too as CRC is the raw material for producing HDG. An obvious shortage is supply level is expected for CRC market in New Year.
HDG market was silent. Construction and industrial projects are stopped, besides CRC price is upward, so HDG producers preferred to wait and see, as demand level is low. Mobarake steel has increased HDG supply during last week and helped market to be a little stable.
Iran Steel Service Center