Billet
During week 19 Iran billet market was full of volatilities. At the beginning of the week when ex-rate dropped, billet market became quiet too.
Billet was offered at Rials 10.3 – 10.4 million /mt on truck in Anzali including 5% VAT for size 150 mm. Market trend was not clear and sellers preferred to stop transacting at these prices, so they struggle against any decline in prices.
Traders didn''t accept declines in domestic market as some new problems for opening LC in Russian Ruble appeared in the market.
Long products market is silent and there is no interest in buying billet. By middle of the week market trend became ambiguous, so prices dropped to Rials 10 million/mt in Anzali and started rising at the same day. Traders went out of market to wait for a clear trend. This trend continued till Wednesday when billet price reached Rials 10.8 m/mt with no transaction at all.
Market participants are waiting for a clear trend and improvements in long products market. Just with better prices and declines in sections market, billet price will improve.
(Ex-rate; official: Rials 12,260/USD , Market: Rials 15,800/USD)
Long products
Sections market started week 19 with Rials 200, 000/mt drop for debar and Rials 150,000/mt decline for I-beam. This downward trend continued till middle of the week and some sizes were priced near last month purchase prices at IME. By Tuesday prices were upward just as traders stopped offering. This trend continued and average price at the end of the week was just like week opening. Average price of debar in Ahvaz for diameter 8-32 mm was Rials 12,579,000/mt and reached Rials 12,570,000/mt at the end of the week. In Isfahan market for sizes 16-25 mm, prices increased by Rials 20,000/mt to Rials12,560,000/mt.
Demand is too thin and the only reason for current increases in prices would be lack of supply.
Some market participants believe that some are making market trend ambiguous to use it for buying their needed raw materials. Last year purchased parcels at Rials12 million/mt has not finished yet, so market should wait for a clear trend.
(Ex-rate; official: Rials 12,260/USD , Market: Rials 15,800/USD)
Flat products
Flat products market was like long products market up and down. HRC 2 mm was priced at Rials 10 million/mt on truck in Anzali then started decreasing to Rials 9.8 million/mt and then increased again to Rials 10.1 million/mt by end of the week. Mobarake steel mill''s prices dropped by Rials 100,000-150,000/mt and Oxin and Kavian prices by Rials 200,000/mt by beginning of the week.
By middle of the week Mobarake steel prices improved a little and Kavian and Oxin mills'' distributors stopped transacting. This made market trend better but didn''t changed much compared to beginning of the week.
HDG price dropped by Rials 300,000/mt as imported parcels availability has increased .Market stagnancy didn''t let HDG price improve. CRC price dropped by Rials 300,000/mt during last week. The main problem of CRC market is lack of demand, besides seasonal weakness will begin from next week. If supply level stay at current levels CRC and HDG market wont improve, but in CRC market some sizes are in low inventory.
(Ex-rate; official: Rials 12,260/USD , Market: Rials 15,800/USD)
Iran Steel Service Center