Billet
Billet
market experienced a downward week in Iran like global markets. Market
inventory level increased as many mills had not sold billet during previous
week due to religious mourning holidays. Therefore, ready to deliver cargoes
available in the market made prices down. Besides, domestic leader Khouzestan
Steel Co offered its billet with payment within 3 months, and they agreed to
charge 1.5% per month. But it was 2% in previous sales.
Billet
size 150 mm was offered at Rials16.5million/mt on truck in Anzali including 8%
VAT and custom duties. Domestic production billet size 120 mm was sold at
Rials15.9-16 million/mt including 8% VAT.
Import
offer from CIS was USD480/mt cfr Anzali port and Chinese billet at USD470/mt
cfr Southern port with cash payment.
Iron ore
and also oil downward price are leading to billet market downward trend.
Besides, demand level is low, waiting for more discounts. Generally billet
price will continue declining except some positive changes in oil and iron ore
market.
Long Products
Long products prices were downward during last week in Iran. Debar
price dropped by around Rials100,000/mt . I-beam, angle and channel price also
declined by the same.
Two main reasons behind downward trend are:
1- Lack of demand from end-users
2- Preferring wait and see policy by many market participants
Demand has bottomed, so there is no interest in buying. Besides,
Nuclear talks have affected market sentiment significantly, everybody prefer
wait for more clear direction in the market in near future before making any
important decision.
We should also pay attention to oil price and its export
level. At the moment oil price has dropped around 30% when comparing with the
price in current Iranian year budget.
This amount of decline cannot be satisfied by more export level as
increasing production level for export takes time and also need investment. So
If Nuclear talks finishes with positive results, Iranian government would be
faced with budget deficit yet. Though, infrastructure projects won't be
activated and steel demand level won't improve in coming Iranian year, unless,
government incomes increase.
Flat Products
Hot rolled Coil 2 mm thickness was almost stable in price during
last week at around Rials20.4million/mt on truck in Anzali including 8% VAT and
custom duty. Other sizes of HRC were offered at stable prices by domestic
producer. HRP market is quiet and prices are unchanged due to lack of supply.
CRC market was stable during last week in Iran. Currently inquiries
for importing CRC has increased in Iran, but ex-rate current trend won’t let
prices decline. Besides, domestic leader Mobarakeh Steel Co supply level is
still limited.
HDG price was unchanged and some sizes are almost unavailable in
the market.
Ex-rate:
In
Exchange Room: Rials 26,757/1USD
In free
market: Rials 32,500 /1USD
Iran
Steel Service Center