Iran Steel Market Trend in Week 43rd , 2014

Billet

Billet price was down by around Rials100,000/mt during last week in Iran Northern Port of Anzali. Billet size 150 mm was Rials16.9 million/mt and size 125 mm around Rials 16.8 million/mt on truck in Anzali including 8% VAT. There was little interest in buying among market participants. Domestic production billet size 150 mm was traded at around Rials16.5 million/mt and size 120 mm around Rials 16.2-16.3 million/mt ex-works including 8% VAT. Buyers are moving cautiously and also producers prefer lowering production level.

Importing billet to Iran is possible by free market currency, so when import price decline to USD450/mt cfr Iranian ports, import level will increase. At the moment Chinese billet is around USD460/mt fob and CIS origin billet is USD485/mt cfr Northern Iranian Ports. As construction activities have declined globally, billet price may decrease around the world.

Long products

Long products market was quiet during last week in Iran. No buying activity was seen and producers can not afford to reduce prices.  I-beam price declined, there was no demand and market participants were cautiously moving. Cannel and angle had also sad markets.

A parcel of around 6400 mt of debar size 12-25 mm from Esfahan Steel Co was sold at base price of Rials16.5million/mt ex-works.

Investors are worried about steel market sentiment. Some producers prefer working actively in export market. But exporters need more supports from government to improve the condition.

Flat products:

Flat products prices were almost stable during last week in Iran. HRC 2 mm thickness was around Rials20.40-20.45 million/mt on truck in Anzali including 8% VAT. Limited transactions were finalized. HRC 2.5-10 mm thickness had a silent market and despite limited market inventory, there was no interest in buying.

HRP market was also unchanged and no significant price movement was seen.

CRC market experienced some improvements in price of thickness lower than 0.50 mm due to lower import level and also limited domestic supply level. But other sizes were stable.

HDG price was almost stable with just thickness 0.40 and 0.50 mm improved around Rials100,000/mt.

Ex-rate:   

In Exchange Room: Rials 26,705/USD