Billet
Billet price experienced a downward trend during last week in Iran. Billet size 150 mm dropped by Rials300,000/mt to Rials17.2 million/mt on truck in Anzali including 8% VAT.
Domestic production billet size 120 mm declined by around Rials200,000/mt to Rials16.3million/mt ex-works including VAT. As long products demand level was low, billet deals were scarce too.
At the moment there is little interest in importing billet as billet sale price in Iran market is low. There was also no interest in buying Esfahan Steel Co billet at IME during last week. It is notable that domestic producers are trying to export their billet, so their supply level in expected to drop in domestic soon.
Billet price is near the bottom at the moment in Iran. If DRI or scrap price declines, it will affect billet price. Also lower exchange rate will decline import prices and influence domestic billet prices too.
CIS billet is currently being offered at USD510/mt cfr Northern Ports in Iran. It is not an interesting price for importers, so they are decreasing their orders significantly.
Long products
Long products prices were downward due to lower ex-rate and lack of demand. Debar price was down by Rials300,000/mt and Channel price dropped by Rials1million/mt for some sizes.Weak demand and wait and see policy which many market participants have chosen to see final results of Nuclear Talks before any important movement, has made market quiet despite decreasing supply level by domestic producers.
Debar price was downward during last week like same time last year. But the difference was that last year downward prices were due to presidential election and politics, but this year due to cheap inventories dumped in warehouses.
Market participants believe current situation will continue in Iran market till final results of Nuclear talks. Besides, tensions in Iraq will affect Iran long products export level severely which will be clear in coming months.
Flat products
Hot rolled coil 2 mm thickness was down by Rials200,000/mt to Rials19.5million/mt on truck in Anzali including 8% VAT and custom duties. Korean product was offered at the same price in Imam Khomeini port in Southern part of Iran. At the moment Kazakhstan is offering HRC to Iranian buyers at USD560/mt cfr Northern ports, adding custom duty and other charges it would be around Rials19million/mt for the importer. Price fluctuations risks have not been accounted in this cost price. HRC import level has been upward since 2 months ago especially in Southern ports. Besides, suppliers are resisting against lowering prices despite lower ex-rate and market sadness.
HRC thickness3-15 mm from Mobarakeh Steel Co was down by Rials200,000/mt. This trend was experienced in HRP market too. A flat products trader’s bankruptcy announcement made market stopped and sellers get back, this will continue this week too. Supply level by domestic producers is being controlled but low demand level and risk of lower prices, has made market stopped without any significant movement.
Ex-rate:
In Exchange Room: Rials 25,608/USD
In free market: Rials 32,230/USD
Iran Steel Service Center