Billet
Billet price was upward during last week in Iran due to improvement in ex-rate and lower import level.
Billet price is downward in global markets but higher ex-rate and problems for importing, has made Iranian importers not interested in buying from abroad. These days importing billet at lower than USD530/mt cfr Northern ports is possible but regulations has made it difficult to import.
Billet size 150 mm was priced at USD 706 - 714 /mt on truck in Anzali port including 6% VAT and other costs, it raised to USD755 /mt till end of the week with limited transactions levels done. Higher price was due to better ex-rate and low inventory of traders.
By Wednesday last week, when Khouzestan steel mill''s billet price was up by USD33 /mt at Iran Mercantile Exchange to USD692/mt, it influenced long products market too. Afterward billet price surged again but this trend won''t continue in coming days as market would be close from Tuesday due to holidays.
Long products
Long products market was up last week. Meantime billet price of domestic producer at IME surged by USD33/mt and ex-rate improved. The improvements made long products market upward, Khorasan Steel Mill long products were offered very limited during last 10 days but last week market participants were talking about USD819/mt for its debar. By Wednesday afternoon, with decline in ex-rate, market became silent suddenly.
Main reason behind market sadness was lack of demand. Besides, an increase of USD20/mt was not a reasonable one in the current situation. May be market would accept USD4-8/mt increase in debar price. Although it was announced that Khorasan Steel Mill''s debar would be offered at IME at USD720/mt, so many market players stopped working. It should be noted that in coming 2 weeks market would be sad due to holidays and Presidential Election, so wait and see policy would be a logical choice for market players.
Flat Products
During week 22nd , Price of 2 mm thickness hot rolled coil increased by USD20 /mt to USD900 /mt on truck in Anzali including 6% VAT and custom duty in Iran flat products market.
HRC price didn''t change significantly and was less influenced by ex-rate changes, although some sizes experienced improvements. By end of the week, market saw some players trying to increase prices but it was not more than USD4/mt. Main reason behind almost stable trend is higher supply level by Kavian Steel Co which is competing with Mobarakeh Steel mill and Oxin Steel mill. Demand level is low so the limited competition of producers has made market stable.
CRC price for some sizes like 0.70 mm thickness increased by USD12 /mt , but market was stopped after ex-rate declined. Around 8000 tones of CRC have been imported to Iran during last Iranian Month which is enough at the current situation.
Although, HDG market price was stable despite limited supply level.
(Ex-rate: In Exchange Room: Rials 24,780/USD)
Iran Steel Service Center