Billet
Billet market was downward during last week in Iran. Offer price of billet size 150 mm dropped by USD8/mt to USD706/mt on truck in Anzali including 6% VAT and custom duty. Buyers were bidding at lower than USD704/mt. Domestic producer, Khouzestan Steel Mill sold billet at IME (Iran Mercantile Exchange) at USD661/mt without change. Its favorable payment term helped price to be stable. Domestic billet price finished the week at USD674/mt on truck in Anzali including VAT and custom duty.
Billet import level has declined, but domestic production has improved besides demand level is very low.
Domestic producers have good profit margins at the moment, but as scrap price has not decreased, if billet price declines, they will have lower margins.
Long products
Long products market sentiment was downward like previous weeks. Esfahan Steel Mill debar price dropped by USD8/mt by middle of the week.
Esfahan Steel Mill has announced that will offer debar at USD721/mt in IME this week, which is higher than buying small parcels in retail market. So,market participants didn''t expect this price to be successful in deals. After all, demand level is almost dead at the moment.
Besides, government is trying to decrease prices in the coming future, as a result market participants prefer wait and see policy. Average price of debar in Esfahan and Ahwaz markets dropped by USD4/mt by end of the week to reach USD765/mt and USD761/mt ex-work.
Market participants expect limited fluctuations for long products prices as raw materials like pig iron and scrap price are stable. If this sadness continues, some drops in prices would be inevitable.
Flat products
HRC 2 mm thickness was priced at USD775/mt on truck in Anzali including 6% VAT by beginning of the week, but finished the week at USD763/mt as ex-rate was downward. Price of HRC thickness up to 15 mm from Mobarakeh Steel Mill dropped by USD4/mt as demand level is limited. The producer didn''t change its prices at IME with many limitations for selling. HRC with thickness more than 15 mm also dropped by USD4/mt. At the moment import parcels are competitive as prices are lower.
CRC market was stable as its price and market inventory has bottomed, but lack of demand do not let prices change. HDG market was also quiet. Many producers have decreased offer levels as demand is scarce.
Market participants didn''t expect any significant change in coming days at flat products market.
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(Ex-rate: In Exchange Room: Rials 24,770/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
Iran Steel Service Center