Billet
Billet price started week 28th with some declines but became stable again. Billet size 150 mm was USD742/mt on truck in Anzali including 6% VAT and custom duty on Saturday and dropped to USD736-738/mt by Monday, then finished the week at this level.
During first half of current Iranian Month (22 Jun-06 Jul) more than 70,000 tones of billet has been imported to Iran which shows 200% rise compared to whole import level of last Iranian month ( 22 May-21Jun) . About 51,000 tones of this tonnage have been arrived in Southern Iranian Ports.
Despite long products quiet market, billet import level increased due to worries about supply shortage in the future and sellers resisted against ay decrease. Minimum billet price in Anzali port was USD730 /mt.
Besides, domestic supply level in billet market has improved. During last 4 Iranian months, billet supply level at Iran Mercantile Exchange was almost upward. By end of first Iranian month (20 Mar-20 Apr ) around 164,000 tones of billet was supplied at IME, it decreased to 110,000 and rise again to 173,000 tones in the two months after that. During first 17 days of current month (22 Jun-06 Jul) it reached 172,000 tones.
Main problem for billet market at the moment is that long products market is in demand shortage and no improvement is likely in coming future.
Long products
Long products market experienced one of its most quiet weeks in current Iranian year. Prices were down by beginning of the week as there was no demand. By Monday shipments from Esfahan Steel Mill were stopped and just helped prices stop dropping but demand level was not improved.
By middle of the week, prices started dropping again and debar price was USD 795/mt ex-warehouse in Tehran market. Market participants prefer wait and see policy at the moment and are not interested in stockpiling.
In coming weeks Iran Long products market won't improve by sure and there is a rumor that some mills have shown interest in selling debar at lower than USD 702/mt ex-work, which means downward trend will continue.
Flat Products
Downward trend remained in Flat products market during last week. Price of 2 mm thickness HRC started the week at USD807 /mt on truck in Anzali including 6% VAT and custom duty and finished the week at USD795 /mt. HRC import level from South Korea is high at the moment as it is not involved in sanctions against Iran. But due to market sadness in Holy Ramadan and lower export level of finished products, HRC market trend would be downward.
Domestic suppliers' HRC product was down in price as demand level is low and there is no hope in improvement in coming week.
CRC market was quiet due to lack of demand despite very limited supply level in domestic and import market. HDG price also experienced around USD 12/mt drop during last week. Market participants believed that current situation won't change at least until new president start working.
(Ex-rate: In Exchange Room: Rials 24,787/USD)
Iran Steel Service Center