Billet
During last week billet market experienced many fluctuations in Iran. Market price for size 150 mm was Rials15.5 m /mt on truck in Anzali including 5% VAT by beginning of the week. After rise in ex-rate, billet price rose to Rials16.8 m/mt. Some sellers were offering at Rials17.2 m/mt, but there was no taker in the market.
By middle of the week, after ex-rate started dropping, billet price became downward too. By Wednesday import billet price was around Rials16.6 m/mt in Anzali and domestic product was Rials16.4-16.5 m/mt, but transactions were limited.
Debar price experienced same fluctuations during last week. At the moment there is around Rials 1-1.3 m/mt gap between billet and debar sale price. Billet import level has bottomed and it is not expected to rise as long products market is depressed. Though, import billet price should rise due to low supply level. But it doesn''t mean that final products prices will rise too as import materials will be replaced with imported one.
Long products
Debar price was upward till Tuesday then finished the week downward. Average price of debar in Esfahan market started the week at Rials17.325 m/mt then after some up and down fluctuations finished the week at Rials17.67 m/mt. I-beam price had same fluctuations like debar during week 52.
Positive sentiment of debar market increased transactions levels of debar at Iran Mercantile Exchange ( IME). During last Iranian month (21 Nov-20 Dec ) around 104,000 tons of debar was transacted at IME but during first week of current month 127,000 tones of debar was sold at IME.
As last quarter of each year is time for steel market restocking, long products prices will be upward, but low demand in construction market won''t let long products prices change significantly.
Flat products
HRC 2 mm thickness experienced around Rials4.6 m /mt rise during week 52. Main reasons behind the rise are lower import level and higher ex-rate. Other sizes of HRC were in the same trend as import level has dropped significantly.
Mobarakeh Steel mill offered around 308,000 tons of HRC at IME during last Iranian month (21 Nov-20 Dec ) and its prices were up by Rials 200, 000mt during last week. For thickness of higher than 15 mm, at the moment Oxin Steel Mill is the only supplier in Iran domestic market and import level has dropped too. Meanwhile low demand and selling at high tonnage do not let its prices to increase.
CRC market was somehow upward during last week. Its supply level has dropped both in import and domestic markets. Supply level has dropped around 25% during last Iranian month to 72,535 tons compared to a month ago. If ex-rate stabilizes, CRC price should increase.
HDG market was upward during last week. When other products were downward by end of the week, HDG price didn''t follow the trend due to limited supply level. HDG supply level has been declining during last 6 months and is unlikely to improve in coming future. Although, CRC supply level is low, so HDG market won''t experience lower prices in near future.
Iran Steel Service Center