Billet
Despite weakness of demand in Holy Ramadan, billet price was almost stable during last week in Iran. Billet size 150 mm was around USD716 -718 /mt during the week on truck in Anzali including 6% VAT and custom duty. By middle of the week lower than 5,000 tones was sold by a trader at USD702 /mt in Anzali, but limited tonnage of the transaction didn''t let almost closed market change.
It seems that billet price has bottomed in Iran and there is no space for further cut. But domestic scrap price has decreased by USD60/mt during last 3 weeks, so would cause domestic billet price to decline. Meanwhile next movement of domestic producer Khouzestan Steel Mill can have a significant influence on market sentiment.
Long products
Market participants were all in wait and see policy during last week. Long products market was quiet and almost closed. Prices were downward as some traders tried to decrease their inventory level as believed new president will try to make prices lower, so some of them sold their inventory with loss to avoid further loss in future.
Purchased debar from IME after 6% VAT would costs USD764 /mt for traders, but it is being sold at just
USD770 -773 /mt in retail market. It means traders can make profit of just 2%, when they have to pay more than this for tax.
Market needs some time to find its way. At the moment market participants mostly prefer to have low inventory. Significant improvement in near future cannot be expected at the moment.
Average debar price at Ahwaz market dropped from
USD784 /mt to USD780/mt during last week. Its price in Esfahan market dropped by USD2/mt to USD778/mt. Average price of I-beam size 14-18 mm in Esfahan market declined by
USD2/mt to USD816 /mt.
Flat Products
HRC 2 mm Thickness was priced at USD756/mt on truck in Anzali including 6% VAT and custom duty by beginning of the week and was almost stable during the week. Transactions level were limited and price has reached the bottom. Minimum import price from South Korea is USD625/mt and from CIS is USD590/mt cfr Iranian ports. By including different costs which they have to pay, importing HRC 2 mm is not profitable for importers. Price of HRC thickness 2.5-15 mm declined by USD12/mt to USD718/mt in Esfahan Market. But importing HRC thickness 15 mm or higher is profitable and more than 40,000 tones of it has been imported during last Iranian month (22 Jun- 22 Jul ) . Price of HRC products from other domestic producers such as Kavian Co and Oxin Co dropped by USD8/mt, but buying interest is limited as transactions level at IME has dropped from 311,000 mt to 238,000 mt during last Iranian month( 22 Jun- 22 Jul) .
CRC price was downward as consumers sections are in summer stoppages and demand level is low. HDG market was also waiting for better demand but there is no hope in improvement.
(Ex-rate: In Exchange Room: Rials 24,787/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
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Iran Steel Service Center