Iran Steel Market Trend in Week 47th, 2013
Billet
Billet market was downward in Iran during last week. Billet size 150 mm which was priced at USD675 -677 /mt on truck in Anzali including 6% VAT by beginning of the week, finished the week at USD 665 -667 /mt. Billet size 120 mm from domestic producers was also transacted at USD632 - 636/mt ex-work including VAT but demand level was low and limited deals were done.
Market participants believed that the best policy would be waiting for any improvement in demand and also results of nuclear negotiations with 5+1.
As Esfahan Steel is offering billet at IME, it is clear that producers also prefer lower production of finished steel products and waiting for a clear trend.
In import market lower prices and limitations in allocating currency from exchange office have ended in lower import level in last Iranian month ( 23 Oct-21 Nov) at 16,000 mt which had not been seen during 5 years ago.
Long products
Long products market experienced a depressed week as previous weeks. Lower prices increased market sadness. Debar was offered at base price of USD683/mt at IME but the producer couldn''t finalize any deal. Ahvaz ( in southern part of Iran) producers'' debar is cheaper than other mills at the moment but mills'' prices are higher than retail market.
I-beam market experienced downward trend during last week and very limited deals were done. Traders prefer buying just for immediate needs.
Iran Steel Service Center''s statistic data show that market experienced the same situation this time last year, which prices reach bottom and improved after a month but just because of higher ex-rate not better demand. Small producers are worried about this situation.
Flat Products
Hot rolled coil market was downward but at low level during last week. HRC 2 mm thickness dropped by USD4/mt to USD769/mt on truck in Azanli including 6% VAT. Other sizes of HRC were also downward due to low demand and depressed market. Market participants expect HRP price to reach low level of USD725/mt ex-work including 6% VAT.
CRC market is facing with low import level which is about 3,000 mt /month at the moment. As importing CRC with currency allocated from exchange office is limited at the moment and importing with free market currency is not affordable, therefore market is waiting for more limited import level. Despite low supply level, prices have not improved significantly due to lack of demand. CRC price improved by average USD8/mt during week 47th. It may rise more in coming days.
HDG market is also facing with scarce demand in Iran. Despite shortage of supply its price for some sizes improved by up to USD12/mt. lack of demand is making significant improvement in prices far from happening.
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(Ex-rate: In Exchange Room: Rials 24,822/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
Iran Steel Service Center