Billet
Billet price reduced just by up to USD4/mt during last week in Iran. Billet size 150 mm was offered at USD696-698/mt on truck in Anzali including 6% VAT and custom duty and finished the week at USD692/mt. Lower exchange rate, limited demand in long products market and its lower production level finally ended in lack of demand and downward prices in Billet market.
Imported billet in priced at USD530/mt cfr Northern Iranian ports and would be profitable for Iranian importers to buy billet. Nevertheless, difficulties in money transferring and negotiation of documents do not let them be interested in import market.
Long products
Iran I-beam market was upward during last week due to supply shortage. Some sizes finished the week at USD40/mt higher than a week ago. At the moment many traders have become interested in dealing on I-beam size 20 mm and higher as it is in low supply and therefore profitable. Esfahan Steel offered around 14,000 tones of I-beam at Iran Mercantile Exchange (IME) last Sunday, when there were more than 63,000 tones demands for it. Actually, low supply level of Esfahan Steel Mill has improved market sentiment.
Debar price experienced an opposite trend compared to I-beam and dropped severely. It''s about two months that debar price in retail market is cheaper than its price offered by mills at IME which led to market sadness. This depression has made many mills reduce their production level too.
Some market participants believe that if export level improves, debar producers inventory level will drop and prices will increase. At the moment average price of debar diameter 14-25 mm is USD745/mt ex-work and is unlikely to be lower than this level in near future as exchange rate is almost stable and any good news regarding decreasing sanctions against Iran will improve market sentiment.
Angle and channel were upward in price due to limited supply level. Prices increased by USD4-12/mt during the week. It should be noted that demand level for these products is still limited.
Flat Products
HRC import level to Iran has reduced during last 2 months, which has led to limited supply level in domestic market. Low market inventory made price upward during last week. Prices were up by USD28/mt to USD817/mt on truck in Anzali including 6% VAT and custom duty, although deals were finalized at USD805-809/mt.
HRP price reduced during last week despite lower supply level of Kavian Steel Mill, mainly due to shortage of demand and higher supply level of other producer Oxin Steel. HRP market would be almost stable in coming days as it is last week of the month besides religious holiday as the end of the week.
CRC import level has reduced currently as it is not profitable for importers. CRC price increased due to low supply level mainly as Mobarakeh Steel Mill declined supply level too. Prices were up by USD 4-20/mt depending on size.
HDG demand level didn''t change during last week, but limited market inventory made its price improve by up to USD60/mt in some cases depending on demand level.
Market participants still prefer wait and see policy to have a clear outlook about future of sanctions against Iran. It is obvious that Iran steel market needs higher export level to improve as current domestic demand level is much lower than production capacities of Iranian steel mills.
(Ex-rate: In Exchange Room: Rials 24,841/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