Billet
Billet market experienced severe fluctuations last week in Iran. Billet size 150 mm changed price from USD718/mt to USD677/mt on truck in Anzali including 5% VAT and finally finished the week at USD705/mt on Thursday.
Billet market fluctuations were due to:
1- Some hopes about better supply level, which made sellers offering. Some market participants were worried that billet price may drop to under USD615/mt on truck in Anzali including 5% VAT.
2- Lower debar price in retail market, which was declined to lower than base price at Iran Mercantile Exchange.
3- Significant decline in Ex-rate which was down from Rials 36,000/USD to Rials32,000/USD in open market.
The change in billet price and improvements by end of the week was due to changes in above factors. Ex-rate was up to Rials35,000/USD and debar price improved by USD20/mt.
Such fluctuations are not something strange and have happened many times during current Iranian year. But it is not logical when happening during one week. Just one working week is remained till end of current Iranian tear, so possible affects of such fluctuations will show themselves in New Iranian Year ( 21st March onward).
(Ex-rate: In Exchange Room: Rials 24,386/USD)
Long Products
Long products market was full of up and downs during last week in Iran. Debar price dropped by USD20-25/mt per day till middle of the week and prices ex-warehouses in Tehran were lower than ex-work prices by Monday.
When debar base price at IME was USD713-734/mt , price at retail market in Tehran was USD701-709/mt. Buying from traders was 7% cheaper than buying from IME. By Monday debar diameter 14-25 mm was heard USD697/mt in Tehran but its ex-work price was USD705-709/mt. Market players refused from offering as debar price was at the bottom. Other long products such as I-beam, angle and channel experienced the same conditions. Finally traders preferred waiting, so it helped market stabilized and prices improved a little.
By last Tuesday, after increase in Ex-rate, debar price improved by USD41/mt and market was stable the next day.
At the moment steel market is in end of the year sentiment. But one thing is clear that traditional factors such as demand or supply level are not affecting prices any more.
(Ex-rate: In Exchange Room: Rials 24,386/USD)
Flat products
Flat products market experienced the same fluctuations as other steel products during week 10th in Iran. 2mm thickness HRC was dropped from USD943/mt to USD832/mt and improved again to USD923/mt on truck in Anzali including 5% VAT by end of the week. Other sizes of HRC were faced with fluctuations but at lower pace.
CRC market was downward. Demand level was apparently low and consumers will lift the market at current condition.
HDG market was downward too, but down prices were mostly for thicknesses lower than 1.2 mm as its inventory level is higher. HDG import level has almost bottomed during current months and domestic suppliers are just working in the market. Market should wait to see if there would be enough inventories in the market when seasonal demand will increase in coming months.
(Ex-rate: In Exchange Room: Rials 24,386/USD)
Iran Steel Service Center