Billet
Price of billet size 150 mm dropped by Rials100,000/mt by beginning of last week, then tried to improve but seasonal factors besides coming long weekend didn’t let prices change. Billet size 150 mm was around Rials17.05 million/mt on truck in Anzali including 8% VAT and custom duty during the week. Size 150 mm in domestic market was around Rials16.5-16.7 million/mt ex-work including VAT depending on the producer. Billet size 120 mm in domestic market was also stable at Rials15.8million/mt ex-work including VAT.
Esfahan Steel Co announced that would offer its size 150 mm billet at IME at base price of Rials15.41million/mt by Wednesday, which is the same as its last sales. This would mean that government is trying to stabilize billet price.
There is something to be noted that price of billet of Khouzestan Steel Co was Rials15.158 million/mt at IME five months ago (last month of an Iranian year ago) which compared to current price at IME there is just Rials400,000/mt gap despite increases in production costs. Global billet price has dropped compared to a year ago, but no significant change in Iran market, so re-rollers expect billet price to decline but billet producers resist.
Long products
Long products prices were downward by beginning of the week. Some market participants tried to increase prices by middle of the week, but market was not ready to absorb it so it was almost stopped. By Wednesday prices were the same as a week ago.
At the moment three factors are affecting Iran steel market including:
1- Weak demand due to lack of any infrastructure budget
2- Summer and Ramadan seasonal dullness
3-Lower supply level
First two factors have affected Iran steel market during third quarter of last Iranian Year ( Oct-Dec 2013) , so market have adjusted itself with this condition. At the moment warehouses are almost empty of long products purchased during last year at cheap prices. These cheap cargoes didn’t let prices improve. Last week debar price was a little upward after a few weeks of declines, but market didn’t accept it. It shows that market is not yet ready to absorb any increase in long products prices. It was also an alert for traders to be not hopeful about persistence of current dull situation in the market.
Some market participants expect improvements in steel market in near future as government is trying to support different sectors with a USD14 billion supportive plan.
Flat products
HRC 2 mm thickness was almost stable at Rials18.7million/mt on truck in Anzali including 8% VAT and custom duties during last week in Iran. HRC size 2.5-10 mm experienced Rials100,000/mt decline due to market sadness. Traders are not interested to deal at current prices and prefer putting their money in a bank account.
HRP price also dropped by Rials100,000/mt and market was in a quiet sentiment like weeks before.
CRC market experienced some declines as import supply level increased, but domestic products are yet in low supply with some improvements in prices. HDG price also dropped by Rials200,000/mt due to more import level.
Ex-rate:
In Exchange Room: Rials 26,076/USD
In free market: Rials 31,300 /USD
Iran Steel Service Center