Billet
Billet price was downward by USD4/mt during last week in Iran and size 150 mm was priced at USD712/mt on truck in Anzali including 6% VAT and custom duty.
Despite low import level during current months, lack of demand won't let prices change significantly. Ex-rate was downward during last week, so it made billet price decrease. Quiet market of long products is another reason behind sadness of billet market.
Long products
Long products market experienced a downward week due to:
1- Downward ex-rate in open market
2- High ambiguity of the market and concerns about lower prices
3- Lack of demand
There was a rumor in the market that Esfahan Steel Mill is going to decrease its products prices in coming week, so market participants hold wait and see policy. Many traders worried about lower prices at IME ( Iran Mercantile Exchange) increased offering cargoes in the retail market, but their inventory level is low and mills production level has decreased. There are also many rumors in the market about possible drops in ex-rate , as a results investors prefer working at Tehran Stock Exchange instead of steel market.
Iran long products market experienced decline of USD 81/mt within September- November last year, so market participants prefer wait and see policy to avoid such experience again. Market participants are worried about more bankruptcies in Iran steel market in coming months. If steel prices drop at IME, surely many steel traders will face difficulties in their payments.
Flat Products
Price of hot rolled coil 2 mm thickness declined by USD8/mt during last week in Iran to USD758/mt on truck in Anzali including 6% VAT and custom duty as demand level was limited.
Other sizes of HRC experienced same trend as thickness 15 mm from Mobarakeh Steel Mill and HRC products of Kavian co and Oxin Co also dropped by USD8/mt. Generally market is quiet and traders cannot decrease prices more than this.
CRC price dropped by USD12-20/mt. But white goods manufacturers have come back from summer holidays, so CRC market expects more demand in coming weeks.
HDG market was sad with lack of demand still common trend of the market.
(Ex-rate: In Exchange Room: Rials 24,796/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