Billet
Billet market was downward during last week In Iran. Price of size 150 mm declined from USD667-669 /mt to USD663 /mt on truck in Anzali including 6% VAT by end of the week. Generally, buyers were expecting more drops in prices and sellers preferred destocking before more declines.
There are two reasons behind downward trend in billet market:
1- The agreement between Iran and 5+1 made market participants more confidant and hopeful. The downward trend in sanctions against Iran and better sentiment has made sellers stop resisting. Fluctuations in exchange rate didn’t affect billet price during last week.
2- Lower long products prices made billet transaction finalized at lower prices with demand decline.
Market Participants expect billet market to be downward in coming weeks in Iran as there are many ready shipment parcels available in Aktau and Astarakhan , when these cargoes arrive Iran, prices will drop more. Besides, long products producers are facing with limited margins. As any improvement in sections prices is unlikely at the moment, billet price should drop more.
Long products
By beginning of last week after announcement if nuclear agreement between Iran and 5+1 long products market became silent and market participants preferred waiting for more drops despite buying. Besides, lower ex-rate made declines easier as demand level was also low.
Debar price declined to USD 746/mt on truck including 6% VAT in Esfahan market. Buyers preferred staying out of market. By end of the week some improvements in ex-rate made market activity better till some sellers stopped offering. The nuclear agreement has made market participants hopeful about improvement in infrastructure projects which will end in better steel demand. It is expected that buyers come back in near future to the market and situation will improve.
Flat Products
HRC 2 mm thickness was offered at USD762 /mt on truck in Anzali including 6% VAT but finished the week at USD4/mt lower. Other sizes of HRC experienced up to USD8/mt decline in prices. Market participants expect HRP price to reach USD725/mt but it will be bottom price as sellers will resist against more declines.
In CRC market prices are stable despite low inventory level. Sellers cannot do anything to improve the market as participants are waiting for more declines.
At the moment Iran Steel market is in and ambiguous situation and it takes some time to see whether government''s new policies will give the market a clear direction to go through or not?
(Ex-rate: In Exchange Room: Rials 24,815/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