Billet
Billet market was quiet during last week in
Iran. Long products sad market has affected billet production and billet
producers are working at lowest capacity. Besides, year end in near in Iran (
end at 20 March 2015), so lack of liquidity and financing problems will
increase the pressure on steel mills.
Billet size 150 mm was offered at
Rials15.6million /mt on truck in Anzali including 8% VAT in import market.
Domestic billet size 150 mm was Rials15-15.1 million/mt and size 120 mm around
Rials14.7-14.8 million/mt ex-work including 8% VAT.
Khouzestan Steel Co currently has reduced
billet base price, market participants expect Esfahan Steel Co follow it. As
long products demand level is down, billet price will continue declining till
current Iranian year end.
Last Tuesday, market leader Khouzestan Steel Co
offered around 100,000 mt billet at IME ( Iran Mercantile Exchange), but sold
just 11,000 mt of it. Some market participants do not expect more than
Rials500,000/mt reduction for billet price till year end. But this wide
difference between supply and demand level says that billet price will be more
downward in coming week
Long products
Long
products were downward during last week in Iran. PriceS declined by
Rials200,000/mt and is expected to continue downward trend in coming weeks as
demand level is reducing. Besides, anticipation of lower billet price in near future
increased market pressure. Inventory level is low, but market participants are
pessimistic in future trend.
Everybody
is in waiting policy, though steel mills are reducing offer levels too. Market
participants mostly agreed that long products prices will drop another
Rials200,000/mt in coming week.
Flat products
HRC
2 mm thickness was down by Rials400,000/mt to Rials18.5 million /mt on truck in
Anzali including 8% VAT during last week. Market participants expect CIS
suppliers come back from New Year Holidays in coming days and import offers
will increase in Iran market. Though, downward trend in flat products prices
would be inevitable. CIS origin HRC is around USD520/mt cfr Iranian Northern
Ports. During previous weeks import orders declined due to religious Holidays
in Iran and after that New Year Holidays in supplier countries. Besides, lower
Ruble rate against USD has made CIS pipe and profile prices competitive against
Iranian origins in Tajikistan and Turkmenistan. Seasonal demand is also down in
winter. At the moment there is no positive sign for any improvement in flat
products market.
Market price for HRC 2.5 and 3 mm thickness
was stable. Despite new government announcement that sizes 6-15 mm import is not possible with exchange room
currency allocation any more, market sentiment did not change.
HRP market was quiet. Demand is low but supply
also declined. When Oxin co starts offering again market will be in more
pressure.
CRC market was also quiet. Supply level is more
than demand, so new policy about stopping exchange room currency allocation for
importing thickness more than 1 mm did not change market sentiment.
HDG market was also down by
Rials100,000-300,000/mt. As CRC market is downward, HDG price will also
continues declining.
Ex-rate:
In Exchange Room: Rials 27,293 /1USD
In free market: Rials 34,950 /1USD
Iran steel
service center