Billet
By beginning of last week as market activities started improving after New Year Holidays in Iran, domestic production billet size 120 mm was being offered at USD639-647 /mt ex-work including 8% VAT. Prices were upward and finished the week at USD655-659 /mt.
During last week imported billet size 150 mm was not offered in Northern port Anzali but new parcels will probably be offered in coming days. It has been said that significant tonnage of billet has been purchased by last Iranian year end, some of which have arrived Iranian ports and the rest will be delivered by coming days.
Latest offer of imported billet has been heard at USD500-510 /mt cfr Anzali Port. Maximum cost price for this billet would be USD608 /mt after 8% VAT and custom duties when using Exchange Room rate. But latest offer was around USD675 /mt on truck in Anzali including 8% VAT and custom duties. Market players do not expect an upward trend for import billet price in near future.
Long Products
First 2 days of last week in Iran, long products market was full of energy, by middle of the week market players preferred waiting for IME ( Iran Mercantile Exchange) transactions on Wednesday. Despite higher price and improved transaction level at IME, retail market didn’t react significantly.
There is no real demand in the market and recent purchases were mostly just an investment choice and cargoes just go to warehouses. Market players mostly expect a rise in steel price in second month of Iranian year by next week. They believe current prices are the bottom and should rise. But high inventory levels won’t let this theory happen. Some market participants are worried that last year first quarter experienced be repeated as higher demand level was temporary by beginning of the year.
Meanwhile some market participants prefer waiting for final result of nuclear negotiations by next month, so are not buying actively at the moment.
At the moments there are many factors influencing Iran steel market prices, but an important one which is consumption level has not improved yet.
Flat Products
Hot rolled coil 2 mm thickness was offered at USD824 /mt on truck in Anzali including 8% VAT and custom duty by beginning of last week, but despite higher exchange rate HRC price dropped by USD 20/mt during the week. Base price for Mobarakeh Steel Co HRC products increased in IME, so prices were up by USD 16/mt in the market as supply level was also scarce. But there was no demand too. HRP market experienced around USD8 /mt increase in price but finished the week at last prices as the market was quiet.
CRC market is experiencing shortage of supply at the moment. It was heard that some cargoes will arrive Northern and Southern ports in coming weeks. As demand level is scarce, improvement in prices is not expected.
HDG market experienced an almost stable trend in first activities of the New Year in Iran.
Iran Steel Service Center
(Ex-rate: In Exchange Room: Rials 25,492/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.