Billet
Billet market started week 21st downward. Price of billet size 150 mm declined by USD4 /mt to USD706/mt on truck in Anzali including 6% VAT and custom duty, but buyers were not interested in dealing. By middle of the week onward, prices improved and finished the week at USD716/mt.
During last Iranian month ( 21 April-21 May) around 68,000 tones of billet has been imported to Iran and offers at USD520/mt cfr Northern ports are also available at the moment.
Though, finished price of imported billet after releasing from custom office would be USD605/mt which is cheaper than domestic products of Khouzestan Steel Mill.
If the current trend continues, billet price would decrease at Iran Mercantile Exchange in coming weeks.
Long products
First half of last week long products market didn''t change much as last days of every month it is quiet. Market participants started buying from Monday onward but at limited tonnage for restocking. By Wednesday market was quiet again as it was announced that base price at IME won''t change in coming week, so traders were not in a hurry to purchase.
I-beam price was upward especially for size 20 mm and higher as its supply level is limited. Debar price started declining and buyers prefer to have very limited inventory level. Besides, mills have decreased production level to the lowest. Demand is in shortage and market liquidity very down.
Besides global prices are downward, so traders prefer wait and see policy, and import level is low. If the situation continues, after presidential election in second market inventory level would be very limited.
Flat products
Hot rolled coil 2 mm thickness was priced at USD880/mt by beginning of last week on truck in Anzali including 6% VAT and custom duty but finished the week at USD900/mt .
HRC thickness 2.-15 mm from Mobarakeh Steel experienced downward trend despite lowest profit margins of traders. Some rumors about lower prices of Mobarake Steel Mill didn''t helped market sentiment as it is very week.
HRC thickness 8-15 mm was offered by Kavian Steel Mill after around a year and width 1.25 mm was bought at USD755/mt . Price of HRC thickness higher than 15 mm was USD795 -799 /mt. As a result Kavian Steel products were competitive against Oxin Steel Mill products. Recently flat products buyers are not satisfied with supply and delivery terms of Oxin Steel Mill so they preferred buying from Kavian Steel Mill. Generally, coming weeks won''t be good time for flat products market in Iran as demand level is low, besides imported parcels are offered in northern and southern ports more than before so market sentiment is more depressed.
CRC market was downward and some deals were down at prices cheaper than purchasing from IME. CRC consumption level has become very limited and buyers work very cautiously. Summer holidays of white good producers will begin after Presidential Election (14th June), so they are not worry about stockpiling.
HDG and PPGI market were unchanged and quiet like current weeks as they are in limited demand.
(Ex-rate: In Exchange Room: Rials 24,776/USD)
Iran Steel Service Center