Billet
Billet price was slightly down during last week in Iran. Esfahan Steel Co offered its billet at base price of Rials16 million /mt by beginning of the week at IME but there was no interest in it. Billet size 150 mm from import market was around Rials 17.2million/mt on truck in Anzali including 8% VAT and custom duty as supply level was low. But size 120 mm from domestic producers experienced around Rials200,000 /mt decline in price to reach Rials 16.2million/mt ex-works including VAT.
Long products market is quiet and producers worried about the situation. By no doubt the situation will lead to lower prices. Last Tuesday Esfahan Steel Co announced that will offer 30,000 mt of billet at IME at base price of Rials15.45 million /mt which means going back to last year prices. But production costs and also transport costs all have increased.
As long products market is in low demand, declining billet price won’t help market improve. Market participants are not yet ready to purchase, so it seems lower price by the producers is just a policy to pass the current depressed situation.
Long products
Long products were all downward except some sizes of I-beam by begging of the week which was due to delay in delivery from Esfahan Steel Co. By middle of the week I-beam market was also down despite delivery problem existence.
Debar market was stable and quiet with prices at the bottom. Everyone is in wait and see policy. Other long products such as angle and channel also were in the same situation.
There is no hope of improvement unless demand level changes.
Flat products
Hot rolled coil 2 mm thickness was down by Rials300,000 /mt to Rials18.8 million/mt on truck in Anzali including 8% VAT. Other sizes of HRC from Mobarakeh Steel Co experienced around Rials200,000 /mt decrease. HRP from Oxin and Kavian Steel mills were down by Rials200,000 /mt despite low supply , due to lack of demand.
As market will be quiet during Holly month of Ramadan, any improvement in flat products prices is unlikely.
CRC market didn’t experienced significant change in price. Despite supply shortage for some sizes, prices are almost stable due to low demand.
HDG market is in same situation as CRC but with better supply level, so prices declined by Rials 300,000/mt during last week.
Ex-rate:
In Exchange Room: Rials 25,629/ /USD
In free market: Rials 31,460 /USD
Iran Steel Service Center