Billet
Billet price was downward during
last week in Iran. Size 150 mm in import market was offered at Rials16.4
million/mt on truck in Anzali including 8% VAT and custom duty. Domestic
production billet size 150 mm was around Rials 16.1 million/mt and size 120 mm
was around Rials15.7 million/mt ex-works including 8%VAT. Domestic mills
inventory level was high, so they had to decrease prices and their payment term
was also negotiable to satisfy buyers. Main reason behind this Was quiet
sentiment in long products market. CIS origin billet is being offered at
USD470/mt cfr Iranian ports and Chinese billet is negotiable at USD440/mt cfr
Iranian ports. But domestic leader Khouzestan Steel Co is offering billet at
base price of Rials15.2/mt ex-works excluding VAT. We should wait to see
if domestic producers can resist against market downward sentiment or not.
Long Products
Long products were downward during last week in Iran. Price were down by
Rials150,000/mt during the week . Producers cannot afford to decline prices
more unless billet price decline more. Main problem in longs market is lack of
demand. Buyers are out of mzrket and prefer buying for just immediate needs.
Many market particioants are waiting for final result of current nuclear talks.
They think a positive conclusion will lead to lower ex-rate and finally lower
steel prices. Generally as there is no real demand in the market, significant
changes are not expected in near future. Producers are facing with lack of
liquidity and if this continue will have serious problems with their bank
loans.
another serious pressure is competitive import prices from china which its
debar is USD480/mt cfr Iranian ports and may reach USD450/mt in near future.
Flat Products
Flat products market was almost unchanged during last week in Iran.
Just HRC2 mm thickness dropped by Rials300,000/mt to Rials 20 million/mt on
truck in Anzali including VAT due to lower import offers and market quiet
sentiment. Import offers droppoed by USD40-50/mt to USD530-540/mt cfr northern
ports.
Other sizes had a depressed week and is expected to decline in coming
days due to higher import offers.
HRP market was also quiet and wait for declines in coming week.
CRC market had some fluctuations but finished the week stable. HDG price
dropped by Rials200,000/mt despite la k of supply for many sizes.
Ex-rate:
In Exchange Room: Rials 26,819/1USD
In free market: Rials 32,400 /1USD
Iran steel service center