Billet
Billet market was
downward during last week in Iran. Domestic production billet size 150 mm was
down by Rials200,000/mt to Rials15.5-15.6 million/mt ex-works including 8% VAT.
Size 120 mm was also down to around Rials15.2 million/mt including VAT. But in
global markets price of CIS billet is not any more decreasing and Chinese
exporters are not offering currently.
The reason behind downward
trend in Iran billet market is long products downward prices which made billet
demand scarce.
Policy of lowering
production level has been seen in billet market currently like long products
market.
Due to religious
holidays in Sunday and Tuesday this week, market will be almost closed in coming
days, so any significant change during week 52nd would be unlikely.
Long
Products
Long products
continued declining during week 51st . Debar price was down by
Rials200,000/mt and there was almost no
buyer in the market. I-beam price was also down, just size 18 mm improved due
to low supply level. Price of angle and channel was also dropping.
Billet price is
decreasing and long products are in low demand, so mills have no choice other than
lowering prices. Market participants are waiting to see what would happen in
next week as it will be almost closed this week.
Flat
Products
HRC 2 mm thickness
experienced a stable week. Higher ex-rate has made sellers more cautious, as
import orders are finalizing with some delays. Sizes 2.5-6 mm experienced low
supply level so prices didn’t drop. Mobarakeh Steel Co products sizes 10-15 mm
were also stable. Oxin and Kavian Co hot rolled plate prices were also stable
due to low supply level. But there is also no demand.
CRC market experienced
some declines in prices due to higher supply level in import market. But as
ex-rate increased, downward trend in prices stopped. Significant decline in
price of CRC seems unlikely in near future.
In HDG market price
increased around Rials100,000/mt but market is depressed and further
improvement in coming weeks is not possible.
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Ex-rate:
In Exchange Room: Rials 27,043/1USD
In free market: Rials 35,100 /1USD
Iran steel service center