Billet
Billet market
experienced a downward trend as recent weeks in Iran. Khouzestan Steel Co
offered 130,000 tons of its billet by last Sunday at IME ( Iran Mercantile
Exchange) at base price of Rials13.25million/mt ex-works excluding 8% VAT and
could sell just 43,200 tons of it. This lack of interest in buying made price
of billet for other domestic producers also downward.
Billet size 150 mm from import origins has become Rials14.3million/mt on truck
in Anzali including 8% VAT. A transaction was done at Rials14.5million/mt for
payment within one month.
Domestic producers mostly have declined production level but there is no hope
in price improvement as demand level and long products prices are down.
Iranian mills are in need of liquidity as every year end, but they can’t
afford. So they need more support from government to avoid stoppage of small
mills and more job losses.
Long products
Long products
were downward. Average price of debar size 14-25 mm dropped by Rials450,000/mt
to Rials16.7million/mt ex-works Ahwaz including 8% VAT and in Esfahan it
declined by Rials100,000/mt to Rials16.6million/mt ex-works Esfahan including
8% VAT. Average price of I-beam declined by Rials100,000/mt in Esfahan to
Rials17.9million/mt ex-works including 8% VAT. Other long products were down by
Rials200,000/mt.
Long products demand level have been very low during last 3 months and market
participants are pessimistic about future sentiment, though they have
stopped new investments in this section. Iran long products market is facing
with supply surplus and lack of domestic demand; therefore it needs new government
policies to improve export level for all steel products. Some market
participants expect billet and long products prices drop by Rials2 million/mt
to reach the bottom.
Flat products
Price of hot rolled steel coil 2 mm thickness was downward sharply
during last week and reached under Rials17million/mt. Besides, there are import
parcels from China and Korea which will make market situation more depressed
when released.
It’s last quarter of the year in Iran and domestic mills will reduce prices to
increase sales volume as they are in need of liquidity, so prices will decline
more in near future.
Besides, HRC price is downward in global markets and may reach USD450/mt cfr
Iranian ports, though Iranian importers have stopped importing. Also there were
rumors in the market about no allocation of currency from exchange room for
importing HRC , but no official announcement has been released yet.
For HRC thickness 2.5-6 mm, prices were down with demand level declining.
Besides, there are rumors about market leader Mobarakeh Steel Co price declines
in near future which will depress market more.
HRP market was faced will lower domestic supply, so it helped Chinese parcels
be sold in Southern ports. But Oxin Co will increase supply level in coming
week and prices will decline again.
CRC market was also downward. During last 2 months, CIS origin CRC supply level
was high and currently supply level of Chinese, Korean and Indian origin CRC at
Southern ports of Iran has increased which is a bad news for current market
inventories. Market participants expect CRC price decline from Mobarakeh Steel
Co which will make this market quite dead as demand level will traditionally
decline in first half of each year in Iran.
HDG market was also depressed during last week and its price declined by
Rials200,000-500,000/mt averagely.
Ex-rate:
In Exchange Room: Rials34,540 /1USD
In free market: Rials27,504 /1USD
Iran steel service center