Billet
Last Saturday billet size 150 mm was offered at USD 787-791 /mt on truck in Anzali including 6% VAT and custom duties, but when ex-rate started dropping, billet price was downward too. It finished the week with asking price of USD763 /mt from buyers. Besides, sellers were resisting against these declines, as billet import level is too much limited.
The reasons behind lower billet price during last week were harsh drop of ex-rate and downward trend in long products market.
Long products
Long products market was downward during last week as ex-rate in open market dropped from around Rials36,000/USD to Rials33,000/USD. Ex-rate decrease made hopes about possible rise of Esfahan Steel Mill long products disappeared.
Debar prices dropped by around USD40/mt. Esfahan Steel Mill''s debar was priced at USD733/mt ex-work. The final cost price for buyers after 6% VAT dropped to lower than USD779/mt.
After this transaction at IME, debar price in retail markets dropped more to reach lower than USD807/mt ex-work.
Flat products
Flat products market started week 25th downward. HRC 2 mm thickness finished the week by USD24/mt lower at USD876/mt on truck in Anzali including 6% VAT and custom duty.
HRC products from domestic mills including Mobarake Steel Mill, Kavian Steel and Oxin Steel were downward by around USD4-16/mt. Price of CRC and HDG was downward too by around USD4-16/mt.
The sharp decline of ex-rate at open market made market participants hopeless about any improvement in coming week. There are two different views regarding market situation at the moment;
First view believes that current situation won''t last long and prices will reach bottom in coming 2 weeks. Because demand level will improve after current declines in prices and would help market improves.
Second view thinks that ex-rate will hit the bottom and would be balanced in coming future, but low demand won''t let market improve. This view believes that cheap prices will not end in better purchases but would strengthen wait and see policy in the market as Holly month of Ramadan is coming (begins by 10th July).
Besides, there are other factors including politics which are influencing Iran Steel market at the moment and nobody can predict by sure what would happen in coming weeks.
(Ex-rate: In Exchange Room: Rials 24,770/USD)
Iran Steel Service Center