Billet
Billet market was almost stable during last week in Iran. Billet size 150 mm experienced around USD4/mt fluctuation and finished the week at USD605/mt, on truck in Anzali including 6% VAT and custom duties, the same as beginning of the week.
Price of billet size 120 mm offered by domestic producers decreased from USD581-585/mt at beginning of the week to USD565-569/mt ex-work including 6% VAT.
Korean origin billet was offered at USD597/mt on truck including 6% VAT and custom duties. Imported billet is around USD500-510/mt cfr Anzali port, which will costs USD577/mt with ex-rate from exchange room ,after custom duties and other costs.
Domestic producer, Khouzestan Steel Co has offered around 12,000 tones of billet at IME ( Iran Mercantile Exchange) during last Iranian month (on 03rd Dec) at USD622/mt ex-work excluding 6% VAT. Market participants expect lower prices from this mill in coming weeks as long products prices are downward.
It should be noted that 64,381 tones of billet has been imported mostly to Southern Iranian ports during first 25 days of last Iranian month (22 Nov-16 Dec). Improvement in import prices is unlikely in near future as domestic billet is competitive and long products demand is low.
Long products
Long products market was downward during last week in Iran. Esfahan Steel Co sold 40,000 tones of debar and I-beam at Iran Mercantile Exchange (IME) with its base price around USD20/mt lower than last announced price at IME. It means that market may experiences more declines in last quarter of current Iranian year as demand is scarce and mill will be in liquidity shortage like last quarter of every year.
Iran steel market is experiencing lack of demand which has made liquidity shortage more obvious. This market trend will reduce production level which will show its harsh consequences in coming months, like higher unemployment rate in steel market and delays in loans repayments by producers.
Flat products
Hot rolled coil experienced an upward movement for some sizes in Iran steel market despite limited deals during week 51st . HRC 2 mm thickness was up by around USD6/mt to finish the week at USD741/mt on truck in Anzali including 6% VAT. Price of HRC 2.5-15 mm thickness from Mobarakeh Steel Co was stable, it has reached the bottom and seems that there is no room for more declines. HRP price from Oxin and Kavian Steel mills were downward due to import market competitiveness and finished the week at USD718/mt ex-work including 6% VAT.
CRC market was in a stable trend regarding supply and demand level. CRC import level was around 8,000 tones during first 25 days of last Iranian month (22 Nov -16 Dec) but was around 2,800 tones during 23 Oct -21 Nov, and helped market to be more stable. It should be noted that demand level is still low in CRC market.
Iranian HDG market experienced a quiet week with no change in prices.
-----------------------------
(Ex-rate: In Exchange Room: Rials 24,777/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
Iran Steel Service Center