Billet
Billet price was stable during last week in
Iran as supply level has became limited. Demand level has dropped
significantly, therefore producers are trying to just supply as much as end
users need. Long products demand level has reduced and influenced billet demand
. Billet producers are working with 30-40% capacity. Scrap price has declined
to Rials8 million/mt and the gap between scrap and billet price has made billet
production profit margin interesting for billet producers.
Domestic billet size125mm is around
Rials1.3-1.31 million/mt ex-works including 8% VAT and size 150 mm is around
Rials 13.5 million/mt ex-works including 8% VAT. End of the year is near and steel producers
are mostly in need of liquidity, though, billet price may drop more. It may be
noted that Esfahan Steel Co sold 13,000 mt of its billet at base price of
Rials13.9 million/mt excluding VAT, but it was transacted at cheaper price in
retail market.
Long
products
Long
products were downward during last week in Iran but slower than weeks before.
Prices are near the bottom . If billet price decline more long products will
reduce more. Some market participants are hopeful that long products prices
will improve but as year end is near and investers are not interested in steel
market any improvement seems unlikely.
Aesfahan
Steel Co reduced supply level at TME but
there was no interest in buying. A deal for debarcdiameterc14-25 mm was done at
Rials15.58 million/mt, which was a maching transaction as current price in
rerail market is up to Rials16 million/mt base price and finished price is
Rials16.85million/mt. I-beam price was downward during last week especially for
size 16 mm or higher.d Angle and Channel were alsodown by Rials300,000/mt.
This
downward trend is expected to continue in comming weeks.
Flat products
HRC
2 mm thickness had a stable pricectrend during the week but finished the week
Rials100,000/mt lower at Rials16.6 million/mt on truck in Anzali including 8%
VAT. Other sizes werecalso almost unchanged with thickbess more than 6 mm
dropped by Rials100,000/ mt. New iffers at Anzali port made this decline
happen. Market is quiet and prices arec deppressed. HRP market
Ex-rate:
In Exchange Room: Rials 27,591/1USD
In free market: Rials 34,240/1USD
Iran steel
service center
Best regards
M.Taban
Feb 16 , 2015