Billet
Billet market was downward during last week in Iran like previous weeks. Billet size 150 mm started the week at USD637 /mt on truck in Anzali including 6% VAT and finished the week at USD12/mt lower, but buyers were watching the market cautiously. Korean billet was heard at USD605/mt at Imam Khomeini port in southern part of Iran, including 6% VAT.
Two reasons behind downward trend of billet in Iran are long products prices declines and also downward ex-rate, but main reason is lack of demand.
Domestic billet was also downward during last week due to low demand and reached USD580/mt ex-works including 6% VAT.
Long products
Long products were heavily downward during week 50th in Iran. Average base price of debar dropped by USD12-16/mt by end of the week and reached USD685/mt ex-works. Producers mostly have decreased production level at the moment. Warehouses are in low inventory too but market participants believe that long products prices have not reached the bottom yet.
Downward trend in billet and scarp price may make debar price to reach toUSD645-653/mt as the lowest point. But some market participants are hopeful that lower production level would help long products market in coming month. Many participants think that debar price won''t be higher than USD685/mt in coming future.
At the moment Iranian traders prefer buying for just immediate needs as prices are downward daily.
Flat products
HRC 2 mm thickness experienced about USD16/mt decline during last week and reached USD742/mt on truck in Anzali including 6% VAT. As import level has increased domestic sellers were also interested to reduce stock level.
HRC thickness 2-15 mm was also downward by USD8/mt. HRP price from two domestic producers, Kavian Steel and Oxin Steel dropped by USD8/mt to around USD718-722/mt ex-works including 6% VAT. Import market competition especially from Korean products is affecting these two domestic producers of HRP negatively.
Supply level of CRC increased during last week and made prices down. Traders are more cautious about buying CRC as there were some rumors in the market that Mobarakeh Steel Co will reduce prices or at least would change payment terms.
HDG market experienced around USD8/mt decline in prices as the market is facing lack of demand like previous weeks.
(Ex-rate: In Exchange Room: Rials 24,803/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
Iran Steel Service Center