Billet
Billet market continued downward trend during week 48 in Iran. Billet size 150 mm was priced at Rials14,700,000/mt on truck in Anzali port including 5% VAT and Rials 14,300,000/mt in Imam Khomeini port. Some buyers were bidding Rials200,000/mt lower, but no transaction was done at their requested prices.
Currently imported billet price is USD560/mt cfr Anzali port and USD590/mt cfr Imam Khomeini port, after custom duty and other costs, final price would be Rials15,800,000/mt in Imam Khomeini port and Rials15,000,000/mt in Anzali port. But at the moment some importers have cheaper stocks which were bought some months ago.
Any way, if the current situation continues, domestic billet will decrease more to lower than Rials15,000,000/mt. Besides total supply level during last Iranian month ( 22 Oct -20 Nov) dropped by 200,000 mt compared to a month before.
Market participants believe that if prices continue dropping, the confidence would disappear from the market, so production level will decline or may be stop.
Long products
Last Tuesday debar price declined, but then improved again when ex-rate increased on Wednesday. At the moment debar price in retail market is lower than ex-work prices.
Any change in prices at IME, will destroy the market balance. If price increase at IME, stocks from warehouses will be injected to the market. If prices decline, traders will stop buying and try to get rid of their current inventory before more declines. At the moment market participants are paying attention to exchange market as some part of investments have gone to currency market, so will influence steel market too.
Many traders waited for this week market trend and demand level, as shortage of demand won''t let market improve.
Flat products
Flat products market experienced a downward trend last week. 2 mm thickness was priced at Rials17,200,000/mt by start of the week and finished it at Rials17,100,000/mt. Mobarakeh Steel and Oxin Steel mills experienced Rials200,000-300,000/mt declines in their prices but no buyer was interested.
CRC price dropped by Rials500,000/mt during last week in Iran and market participants expect more declines in coming days. HDG market had the same trend as CRC.
Global flat products markets are depressed and prices are declining. At the moment custom duties for importing steel have increased in Iran but nothing has changed at prices. The big problem is demand level which is almost zero. Consumption level has reached the lowest possible level and buyers move cautiously.
Iran Steel Service Center