Billet
Iran billet market has passed a volatile week, with prices downward. Two main factors are affecting billet price including:
1- Downward long products prices and its market sadness
2- A high tonnage billet parcel available in the market
At the beginning of the week billet size 150 mm was around Rials12,900,000-13,000,000/mt on truck in Anzali including 5% VAT, then dropped to Rials 12,700,000/mt and finished the week not more than Rials 12,800,000/mt. When prices declined, traders decreased offering, so prices became more stable. Market participants expect prices to increase in coming week as inventory levels are low. But it depends on sections demand too, generally billet market is upward due to low supply level.
Long Products
During last week, sections prices started increasing suddenly in Iran. Traders became more interested in buying from Iran Mercantile exchange ( IME). For Debar and I-beam, market prices increased to Rials 12,500,000/mt, but by Sunday onward as ex-rate dropped market became silent and buyers stopped dealing. Average debar price was around Rials 15,000,000/mt and for diameters 8-18 mm quality A3, market is facing supply shortage. By Monday after ex-rate decreased besides some rumors about stoppage of construction projects market became quiet.
Generally market was in wait and see policy, some traders worried about more price declines, offered at low prices, but mills and big traders didn't decrease prices. By Wednesday it was announced that in coming week, debar price at IME would be Rials 13,250,000 and I-beam price around Rials 13,910,000/mt , so market sentiment improved.
If base price of debar and I-beam increase by Rials 800,000/mt in IME would influence market positively. Supply level is limited and this price increase is just for testing market sentiment in weeks near Ramadan. If this happen, sections base price won't drop in Ramadan when construction activities decrease.
During last week, merchant bar prices were downward too as billet price decrease and demand level was down. But their inventory level is low, so market participants expect higher prices in coming weeks.
Flat Products
2 mm HRC was around Rials 12,000,000/mt on truck in Anzali by beginning of the week 27, but became down to Rials 11,600,000/mt till end of the week.
As supply level of the product in southern ports of Iran has increased, it affected market , when inventory level at these ports drop, price would rise in coming days.
Domestic mills HRC prices were downward during last week.
CRC price was upward by beginning of the week, for 0.7 and 1.5 mm thickness CRC as supply level of Mobarake steel is high, do not let prices improve. But for other sizes supply shortage is obvious. During next 2 months, CRC demand is low due to seasonal weakness but after that especially for 0.6, 0.9, 1.25 and 1.5 mm thickness, demand level would rise.
HDG price increased by Rials700, 000/mt due to supply shortage which is because of limited import level. It should be noted that market sadness made some sizes decline by just Rials200,000/mt.
(Ex-rate: Official: Rials 12,260/1 USD, Market: Rials 19,637 / 1 USD)
Iran Steel Service Center