Billet
Billet market was stable during week 19 in Iran and price didn''t change due to :
1- Higher ex-rate
2- Limited supply level
3- Higher price at Iran Mercantile Exchange ( IME)
Ex-rate started dropping by middle of the week but price of imported billet which started the week at USD 715 /mt on truck in Anzali including 6% VAT and custom duties, didn''t change significantly.
Offered billets were lower than 1000 tones during last week. Supply level at Imam Khomeini port in Southern part of country was higher than Northern ports but importers were offering billet at Imam Khomeini Port very cautiously.
By Wednesday, market participants were expecting billet price to drop as ex-rate was decreasing, but higher price of slab from Khouzestan Steel Mill at IME let billet price be stable.
Demand level is limited but it is unlikely for billet price to drop to lower than USD698/mt at Anzali port and price fluctuations would be limited.
Long products
Long products prices were downward during last week in Iran. By beginning of the week rises in ex-rate improved transactions a little, but ex-rate declines by Monday onward made long products market silent. Buying from Khorasan Steel Mill was faced with some delays in delivery time during last week. Therefore other mills had the chance to increase transaction levels by decreasing their prices. In the city of Yazd ( in central part of Iran ) debar price of mills dropped by around USD 8 /mt, though despite resistance of other mills against any decrease, debar price was down by up to USD 4 /mt in retail market.
At the moment long products market is experiencing a stagnant time and market participants do not expect any improvement at least in coming 2 months. Traders prefer to buy just for their immediate needs, so the policy has made market sad. In this situation if demand of long products improves a little, will made price increase due to low market inventory level.
These days the only influencing factor in steel market is ex-rate fluctuations.
Flat products
Hot rolled coil 2 mm thickness had a stable week. Higher ex-rate made transactions level improve a little but prices were almost stable at around USD 905 -909 /mt during last week.
HRC 2-15 mm thickness experienced up to USD 8 /mt drop. Mobarakeh Steel Mill continued offering at IME with fixed tonnages like a week ago despite low demand, so market participants were not worried about supply level. Price of HRC thickness more than 15 mm declined by up to USD 4 /mt and market sentiment didn''t change. These products market is stable and sellers are not eager to decrease prices more. Prices have bottomed and inventory levels are limited.
CRC market was almost stable due to limited demand level besides wait and see policy of traders. Some sizes experienced limited declines due to supply shortage. Traders are not interested in restocking CRC as it has almost no profit for them.
HDG market didn''t change like a week ago and the only influencing factor is ex-rate at the moment. At the current situation traders prefer wait and see policy and keeping their liquidity margin unchanged.
(Ex-rate: In Exchange Room: Rials 24,765/USD)