Billet
Billet market experienced a stable week
with size 150 mm in import market being offered at Rials13.55-13.65 million/mt
on truck in Anzali including 8% VAT. Domestic production for the same size in
retail market was Rials13.5-13.6 million/mt including 8% VAT.
Esfahan Steel Co offered billet size 150
mm at Rials13.55 million/mt ex-work including 8% VAT and Khouzestan Steel Co at
Rials13.3 million/mt. At the moment small producers are scarcely offering
billet in the market, so domestic supply level has declined.
Imported billet is around USD390/mt cfr
Northern Iranian ports, which would cost around Rials16 million/mt for
importers with ex-rate of around Rials35,000/1 USD and other related costs for
opening letter of credit.
At the moment if domestic leaders reduce
billet price, it will affect market and prices will decline. Other factors such
as scrap price trend or international billet price are less affective as billet
downward trend is just USD5-10/mt and scrap price has reached almost bottom in
Iran domestic market.
Long products
Long products were almost stable during
last week in Iran. Average price of Esfahan origin debar diameter 14-25 mm just
dropped by Rials20,000/mt to Rials15.45million/mt ex-work including 8% VAT.
In I-beam market price of sizes 14-18 mm
was almost fixed at Rials16.5million/mt ex-work including 8% VAT till last
working day of the week Thursday, when Khorasan Steel Co declined its price by
Rials300,000/mt. In coming days more mills will follow this trend. But as
billet price is stable, long products prices will not decline significantly.
Market participants are in waiting mood
to see what would be final results of current Nuclear Talks.
Flat Products
Hot rolled coil 2 mm thickness started
the week at Rials17.4million/mt on truck in Anzali including 8% VAT on Saturday
but dropped by Rials300,000/mt on the
same day. By Monday when it was announced that import tax rate for steel market
has increased, prices started rising and HRC price reached Rials18 million/mt .
From Wednesday prices were down by Rials200,000. Import tax for this product
has increased by just 4%. Import price is USD440/mt cfr Northern ports. It
would be Rials13 million/mt when including exchange room allocated currency for
it. Final price after custom rates would be Rials15.5million /mt when
released. Chinese HRC 2 mm thickness is
USD420/mt cfr Southern ports and its cost price for importers would be Rials14
million/mt .
If upward trend in flat products market
continues, importers will rush for buying and this will decline prices in first
2 months of Iranian New Year ( begin at 21 March) due to higher market
inventory. Besides, traders which import HRC from Kazakhstan are facing with
limitations about exchange room currency allocation, but Chinese, Korean and
Indian products are being imported without this problems.
HRC 2.5-6 mm thickness was stable and
also HRP market was unchanged. But HRP market is in limited supply due to lower
offer level from Mobarakeh Steel Co. HRP thickness 15 mm was upward from
Wednesday due to low supply level from Kavian and Mobarakeh Steel mills.
CRC market was stable till middle of the
week when news about higher import tax and no currency allocation from exchange
room for its import made CRC price upward and many market participants stopped
offering. Though, market was in a waiting trend. CRC import price is USD500-520
/mt cfr Iranian ports it is logical that cost price reach Rials23million/mt for
thickness 0.6-2 mm. Any improvement in CRC market seems unlikely at the moment
as global prices are downward
HDG market was also upward like CRC market.
Ex-rate:
In Exchange Room : Rials27,883 /1USD
In free market : Rials 33,950
/1USD
Iran steel service center
07 Mar 15