Billet
During last week, Iran billet market was full of fluctuations. Billet size 150 mm started the week at Rials13,000,000/mt on truck in Anzali including 5% VAT. Low tonnage transactions were finalized at lower prices. By Monday, billet price was around Rials 12,700,000-12,850,000 /mt respectively in Southern and Northern ports. When sections market sentiment was improved, billet sellers stopped offering and it helped prices to rise around Rials 100,000/mt till end of the week.
There is a rumor in the market about a big parcel of billet on the way to Iran. At the moment global prices are down, so importing would be profitable for Iranian traders, but if problems for opening LC let them do it. Inventory levels are at the bottom right now, so there is a need for 3 months regular importing of billet to make the market inventory balanced.
Market participants believe that Rials 13,000,000/mt is high for billet, so it won''t increase more. But it should be noted that it reached Rials 13, 330,00/mt during last weeks, but temporarily. It is clear that market cannot accept this price level.
Long products
Long products market participants didn''t expect any increase in prices during last week and it was in waiting position till Monday. Main producers didn''t supply at IME, so the only supplier was Khorasan Steel and it started selling 80,000 tones of debar at Rials14, 693,000/mt which after 5%VAT it would be at least Rials 15,430,000 /mt for the buyer. So market participants became convinced that debar price should rise to at least Rials 16,000,000 in retail market.
Domestic billet price was upward too; it increased around Rials320, 000/mt in IME to Rials 12,170,000/mt by Wednesday. After VAT and other costs, its finished price would be Rials12, 540,000. As a result debar price won''t be lower than Rials 14,500,000/mt.
Lower prices in global markets have made some traders interested in buying debar but if current difficult procedures for importing let it happen. Chinese material was sold around USD590/mt cfr Dubai.
Other long products were in the same situation during last week, prices were upward. But I-beam future market sentiment is not clear.
Flat products
Flat products market didn''t change significantly during last week In Iran. 2 m HRC was the only exception which was upward. It finished the week at Rials13, 000,000/mt on truck in Anzali including 5% VAT. For HRC thickness under 15 mm, domestic supply level is high despite seasonal low demand. For HRC thickness higher than 15 mm, high competition from imported parcels and besides low demand is worsening market situation. If import level drops, Iran HRC market sentiment would improve.
CRC market stagnated a little, it was downward, then started rising by Rials200,000/mt at the end of the week. CRC market participants are hopeful about stability in the coming days.
HDG market is facing supplier''s resistance for declines in prices, despite low demand. Prices may increase after Holly month of Ramadan.
Generally flat products market is depressed at the moment, mainly due to seasonal factors.
(Ex-rate: Official: Rials 12,260/1 USD, Market: Rials 19,174 / 1 USD)
Iran Steel Service Center