Billet
Iran billet market passed a stable week. Imported billet size 150 mm was around Rials17.1 million/mt on truck in Anzali including 8% VAT and custom duty and size 120 mm in domestic market was Rials 16.2-16.4 million/mt ex-works including VAT. As long products market was quiet, billet transaction level was limited.
Global billet prices have dropped during last months, so importing billet to Iran has been profitable for Iranian traders. Therefore more than 30,000 tones of billet has been imported during last Iranian month ( 22 June-22 July) .
Esfahan Steel Co sold 27,000 tones of its billet at IME ( Iran Mercantile Exchange) during last week at base price of Rials 15.41 million/mt ex-work excluding VAT. Besides, domestic buyers are pushing to decline base price of billet at IME. Cost price of this billet is Rials 16.65/mt for the buyers. When adding minimum Rials 1,5 million/mt transportation rate and converting costs, finished price for producing debar would be Rials 18.15 million/mt for a re-roller. As average price for selling debar at retail market is around Rials18.15 million /mt, producers has declined production level to its minimum and coming month trend is not clear.
Long products
I-beam price improved during last week in Iran, but because supply was stopped by Esfahan Steel Co, not by better demand or market confidence in future. Other long products such as debar, angle and channel were stable in price. Debar price also fluctuated a little by end of the week when supply level declined.
Inventory level of traders has decreased, but they prefer moving cautiously due to lack of demand. Two factors have influenced buying interest at the moment. At one side there is high tax which has been asked from traders and at the other side high bank rates which they can get if deposit their money at banks. Therefore, many traders prefer putting their money at banks despite working in steel market.
Some market participants expect prices improve a little In coming weeks as inventory levels is low and prices are at the bottom. But this can’t be significant as demand level is scarce. It may help long products base price improve by Rials 500,000/mt.
Flat products
Hot rolled coil 2 mm thickness experienced some rise in price mainly due to higher ex-rate in exchange room by Central bank. Import level has not changed compared to previous months but sellers have tried to increase prices by USD10-15/mt, which may not continue as summer holidays in Europe has begun. Many market participants expect prices drop again.
HRC 2.5-10 mm thickness from domestic producer Mobarakeh Steel Co was stable in price mainly due to low supply level as demand is low.
HRP price improved a little especially for size 12 mm as market inventory is so much limited. There are some rumors that supply level will increase after Eid- al-Fitr holidays in August. Price of HRP thickness 15 mm or higher was unchanged.
In CRC market supply level of Kazakh origin products increased and all thicknesses higher than 0.60 mm are available in the market. Demand level is yet limited but higher ex-rate in exchange room helped prices staying stable.
In HDG market demand level improved and helped prices increase by up to Rials300,000 /mt.
Ex-rate:
In Exchange Room: Rials 26,253/USD
In free market: Rials 31,450 /USD
Iran Steel Service Center