Billet
Billet market was stable during last week in Iran. Long products market was sluggish but billet size 150 mm was transacted at USD714 /mt on truck in Anzali and USD694/mt at Imam Khomeini port, including 6%VAT and custom duties.
Both sellers and buyers are working cautiously, so deals were done at limited tonnages. Khouzestan Steel Mill had a favorable week at IME and this trend will continue for it as buying billet from the mill include no risks like ex-rate fluctuations or limitations from sanctions or any technical problem. Besides, Khouzestan Steel's billet is available at USD671 /mt ex-work at IME which is the cheapest price for this quality.
Billet of Khouzestan Steel was offered in retail market at USD 686 -694 /mt ex-work . If current trend in Iran steel market continues, billet import would be stopped as importers are faced with many problems and demand level is also limited.
At the moment imported billet price is USD540/mt cfr Northern ports, which after costs would be USD622/mt for importers. With scrap downward price, CIS billet was offered at USD510/mt fob for cash payment.
Long products
Long products market experienced a sad week due to shortage of demand. Traders mostly are just offering and have stopped buying to restock. Consumers are buying just for immediate needs and inventory levels at warehouses are decreasing. Besides, mills can't decrease prices more and they have declined production level. As a result prices fluctuate daily or sometimes weekly.
Long products prices were downward each day till Tuesday when ex-rate improved. After that I-beam price improved but just by USD4/mt. Debar demand dropped significantly. Prices have bottomed and cheap purchased parcels are not much available in the market , but demand level for debar diameter lower than 14mm and higher than 25 mm is so much limited. It should be noted that these sizes are for big projects or Industrial uses, so it is common to have limited demand.
Market players expect improvement in steel market trend and better activity when presidential election would be finished in coming month.
Flat Products
Hot rolled coil 2 mm thickness was being transacted at USD888/mt on truck in Anzali including 6% VAT and custom duty. Transactions levels were limited and price was almost stable till end of the week due to lower demand from pipe and profile producers.
HRC thickness 2.5-6 mm from Mobarakeh Steel Complex experienced downward trend but just by USD4/mt as profit margins has bottomed and there is no space for more discounts. Price of HRC thickness 8-15 mm has bottomed, with demand also scarce.
Price of HRC products from Oxin Steel Mill dropped by USD8/mt for some sizes. Higher competition could increase downward trend but delays in delivery from the mill avoid prices from more declines.
CRC market was downward too. Some sizes are in supply shortage but demand level is scarce too, so prices didn't change. For thickness 0.7 and 1.25 mm, prices were down by USD8/mt but thickness 0.8 was faced with limited supply level.
In HDG market common trend is low demand and its price experienced about USD6/mt decline. HDG market is faced with supply problem like CRC.
(Ex-rate: In Exchange Room: Rials 24,775/USD)
Iran Steel Service Center