Billet
Iran billet market experienced a quiet week with price of size 150 mm at Rials10,800,000/mt on truck in Anzali including 5% VAT but transactions levels were scarce.
Section mills mostly have reduced production level, so billet demand has dropped. Besides, imported billet availability at ports is high and won''t let prices improve.
Last week exchange rate volatility made market participants confused but the main problem of billet market is lack of demand at the moment.
Steel mills are trying to work at the lowest capacity utilization, as their products have no demand.
(Ex-rate; Official: Rials 12,260/1$ , Market:16,400 Rials /1$)
Long products
Long products market was very sad during last week. Debar price dropped by Rials 150,000/mt and I-beam price experienced more declines. Besides, by taking a look at debar transaction levels at IME during last week, the negative sentiment is obvious. Retail market prices are near transaction prices at IME and in some cases lower.
Debar price in Ahvaz and Isfahan dropped by around Rials 20,0000/mt and reached Rials 12,700,000/mt in Ahvaz. In sections market the main problem is lack of demand and if it continues, would lead to bankruptcy of many re-rollers.
Billet transactions levels shows policy of steel mills for producing cautiously. If long products prices in IME decrease, would make market sentiment more negative. Market participants are looking for some stimulus for buying rather than lower prices.
(Ex-rate; Official: Rials 12,260/1$ , Market:16,400 Rials /1$)
Flat products
Flat products market was downward during last week like other steel products. Price of HRC 2 mm thickness dropped from Rials 10,400,000 to Rials 10,000,000/mt on truck in Anzali including 5% VAT, in some cases deals were done at lower prices. More than 1000 tons parcels with one week delivery were offered at Rials 9,700,000/mt, but with no buying interest. Pipe and profile producers are facing with demand shortage, so lack of liquidity is pressing them.
Other sizes of HRC from local mills experienced around Rials 50,000-100,000/mt drops per day. Besides, other flat products have the problem of competitive import prices and shortage of demand.
CRC price dropped from Rials 14,000,000/mt of last month to Rials 13,000,000 /mt and is expected to continue decreasing.
HDG market was downward by Rials 300,000/mt and more imported parcels from India won''t let the market improve, with demand at this current low level.
Generally we can say steel products prices are near the bottom and market participants are waiting for demand improvement.
(Ex-rate; Official: Rials 12,260/1$ , Market:16,400 Rials /1$)
Iran Steel Service Center