Billet
Billet market was upward during last week in Iran following higher ex-rate and surge in long products prices. By beginning of the week billet size 150 mm was priced at USD 690/mt on truck in Anzali including 8% VAT and custom duties but there was no ready to deliver parcel for sale. Domestic billet size 120 mm was being offered at USD670-674/mt ex-work including 8% VAT. Then prices started rising till imported billet was around USD 741/mt on truck in Anzali including VAT and custom duties and domestic production finished the week at USD684 /mt ex-work including VAT.
Khouzestan Steel Co offered billet in IME ( Iran Mercantile Exchange) at base price of USD628 /mt which after VAT and other costs would be USD684 /mt , yet more than USD39 /mt cheaper than import offers.
It would be noted that around 268,500 mt of billet has been transacted at IME during current Iranian Year ( began at 21st March), transactions level at retail market is expected to be twice, but just around 15,148 mt of billet has been imported to Iran. These numbers show that after new production lines start working in current Iranian year, Iran steel market would be self-sufficient in billet supply and there would be no need for import.
Long products
Long products market was upward during last week in Iran. Debar diameter 16-25 mm was offered at USD756 /mt ex-work in Esfahan including 8% VAT but finished the week at USD777/mt . I-beam size 14-18 mm price also increased from USD717 /mt to USD 741/mt by end of the week.
Market players expected downward trend in prices by beginning of the week but after transactions done at IME and expectation of higher prices with more transportation costs, everybody became a buyer. This trend continued till end of the week.
Market participants expect downward trend in long products consumption but cost price is rising so prices won’t come back to last year’s level.
Upward trend of ex-rate also helped long products market during last week.
Flat products
Flat products prices were upward like other steel products during last week. 2 mm thickness HRC was up by USD39 /mt to finish the week at USD843/mt. Other sizes were up by around USD20 -27 /mt. Mobarakeh Steel Co flat products prices were upward due to its higher base price at IME and policy of limited supply level.
HRP price was upward due to limited supply level. Some sizes especially 40 mm thickness is not available at all and Oxin Co delivery system has made many customers not satisfied.
Supply level of HRP thickness 10 mm and higher from Kavian Steel Co improved but was not enough to avoid increase in prices.
CRC market is yet in shortage of Mobarakeh steel products but imported parcels were being offered at Northern ports at good levels. But prices were up due to higher ex-rate not demand level. Higher supply level in import market and stable ex-rate will make CRC market stabilized too.
Demand level is low in HDG market but higher ex-rate affected this market too and prices were up.
(Ex-rate: In Exchange Room: Rials 25,509/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
Iran Steel Service Center