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Iran Steel Market Trend in Week 06th 2015

Billet

 Billet price was downward by beginning of last week and billet size 150 mm from import origins dropped to Rials13.65million/mt and size 125 mm was Rials13.5 million/mt on truck in Anzali including 8% VAT. By middle of the week, sellers stopped offering and kept waiting policy for a better market. Domestic billet size 150 mm was around Rials13.3-13.5million/mt and size 120 mm around Rials13.1-13.2 milion/mt exworks including 8% VAT.

As scrap price is downward and billet demand is declining, many market participants expect downward prices continue. There are some others which believe billet price has bottomed in Iran. Market future trend dpends on debar demand leve in near future till year end in Iran and  market leader Khouzestan steel co policy. Generally market sentiment is deppressed.

 

Long products

Long products market was deppressed and downward during last week in Iran. Debar price started the week Rials500,000-100,000/mt down and continued dropping till end of the week.

Market leader Esfahan steel co offered I-beam size 14-18 mm but just sold 20% of the supplied amount. Its debar offer also didn’t get any interest from buyers.

 long products demand level is downward and market sentiment pessimistic. Market participants expect long product prices reach low levels of 2 years ago.

 

Flat Products

HRC 2 mm thickness experienced downward trend by beginning of last week and was Rials16.3 million/mt on truck in Anzali including 8% VAT by Monday. After that market leaders stopped offering and this made prices up by Rials100,000/mt. Import level has declined significantly and currency allocation for import is delaying up to 40 days, so upward trend in prices is possible. Importers have been faced with big losses during  last 2 months, so they are not interested in import purchases any more. HRC is being offered at USD450/mt cfr northern ports, though its cost price won't be higher than Rials16 million/mt including 8% VAT.

Other sizes of HRC were mostly downard during last week except 3 mm thickness due to low supply. HRP price was stable.

CRC market continued declining and supply level is high. HDG price also decreased around Rials100,000-300,000/mt.

Ex-rate:
In Exchange Room: Rials 34,190/1USD       
In free market: Rials27,560 /1USD 
Iran steel service center

Feb 8, 2015 12:20
Number of visit : 959

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