Billet
Billet market was almost quiet during last week in Iran. Billet size 150 mm was offered at USD607 /mt on truck in Anzali including 6% VAT and custom duty but supply level was so low due to limited import material available. Around 29,000 tones of billet have been imported to Iran during last Iranian month (22 Dec-20 Jan) which mostly have been arrived in Southern Ports.
Heavy snow and cold weather made billet market almost dead last week. Besides, steel mills were faced with gas and electricity supply limitations due to cold weather so transactions level was limited.
Khouzestan Steel complex had an active week selling 150,000 tones of billet in IME at USD555 /mt base price excluding VAT. Long products suppliers will have their margins at the bottom by this billet price.
Some market participants expect this supplier to reduce its billet price in coming future as quiet long products market won''t let billet demand improve despite its acceptable payment condition.
Long products
Long products market was downward by beginning of last week and experienced around USD2/mt decline per day. Some domestic mills resist against this downward trend. By middle of the week market was almost closed due to heavy snow around the country.
Market participants were talking about higher supply level of some sizes of Esfahan Steel Co debar, but buyers are not interested in its high prices.
In I-beam market, two producers from Khouzestan and Yazd provinces were offering I-beam at competitive prices. Esfahan Steel Co''s I-beam cost price is cheaper than others but offers at higher prices. So this competitive situation will influence long products market by sure. As steel traders are not interested in stockpiling, continuous downward trend in prices is expected.
Flat products
Hot rolled coil with 2 mm thickness was around USD742/mt on truck in Anzali including 6% VAT during last week. Market was without any change due to heavy snow in Anzali port. Price of HRC with thickness up to 15 mm declined slowly despite limited supply level.
Hot rolled plate experienced around USD2/mt improvement in price but bad weather condition didn''t help market sentiment. Imported flat products are not much available in the market as demand is scarce and import level has declined. It''s obvious that limited supply level have not helped market situation.
CRC market was stable. Heavy snow made deliveries stopped. CRC supply level is very low and some market participants expect improvement in demand level. Though, situation may change in future.
HDG market is still depressed. Three HDG traders experienced bankruptcy during last week which made market activities almost dead. Besides, HDG supply level is so much limited.
(Ex-rate: In Exchange Room: Rials 24,863/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
Iran Steel Service Center