Billet
Billet market was upward during last week in Iran. Price of size 150 mm inched up by USD8 /mt to USD673 /mt on truck in Anzali including 6% VAT in import market but domestic billet price at IME increased by USD6 /mt and domestic private mills prices increased from USD 645 /mt to USD649 /mt ex-work including 6% VAT in retail market.
Billet demand has declined as New Iranian Year holidays is near but mills are trying to increase inventory level as predict higher prices in the New Year. As Khouzestan Steel Co sell billet at IME with delayed payment, buyers can purchase at the moment and sell the cargo next year based on new higher cost prices. As a result of this stockpiling policy, more than 140,000 MTNS of billet has been purchased last week at IME. Big winners were banks which issued related guarantees for these transactions.
Long Products
Long products market participants expected downward trend during last week but IME supports didn''t let prices drop. Lower supply level by mills also made prices stable.
Besides, currently steel mills are faced with longer delivery times as warmer weather has increased demand for trucks so transportations take longer time than before. Sometimes cargoes are delivered with 10 days delay. Higher transportation costs have been added to production costs.
Esfahan Steel Co sold around 33,000 MTNS of debar at IME last week and may continue the policy this week. Liquidity needs of steel mills besides traders'' expectation of higher prices in New Year have increased market activity during last week. But it''s not clear whether this high level of purchases will be absorbed by the market during first month of coming Iranian Year.
Flat Products
Limited demand level made flat products market upward during last week. 2 mm thickness HRC increased from USD797 /mt to USD834 /mt on truck in Anzali including 6% VAT. But droped by USD 12/mt by end of the week due to change in exchange rate.
Other sizes of HRC were upward as supply level limitation was harsh. Some sizes are completely unavailable. Market leader Mobarakeh Steel Co supply policy besides market sadness during last 4 months has affected current situation.
HRP market was almost stable as market cannot accept more improvement in prices.
In CRC market some sizes were in limited supply and some of them are unavailable at al despite higher import level during last months and better supply level in IME. Reason is better demand especially from auto sector.
HDG price was upward due to low supply level and higher ex-rate, surely not because of real demand. Any significant change in supply/demand of HDG is unlikely in near future.
(Ex-rate: In Exchange Room: Rials 24,951/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
Iran Steel Service Center