Billet
Billet
market was downward during last week in Iran. Billet size 150 mm was down by
Rials200,000/mt. Supply level of size 125 mm has declined due to stoppage of
some small producers, but downward trend continued to reach around Rials12.6
million/mt.
Market
leader Khouzestan Steel Co sold 100,000 of its billet at base price of
Rials12.02 million/mt at IME compared to Rials13.25 million/mt 2 days before.
The reason behind this difference is not clear but may show Iran billet market
trend.
Imported
billet was offered at USD330/mt cfr Northern Iranian Ports, but buyers expect
prices will drop to USD300-310/mt cfr in near future.
Main
problem of Iranian billet market is high production capacity and supply surplus
despite lack of demand. Meanwhile, many small mills are in danger of stoppage.
Long products
Debar price
was stable during last week in Iran. Its price had been downward during last
year, so, many producers stopped working or declined production level.. Many
market participants expect some decline in prices in coming weeks as demand
level is low despite high competition between sellers.
I-beam
price improved during last week in Iran as supply level was low and some
positive signs appeared. Around 250,000 mt of I-beam size 14 and 16 mm was
being sold during last week and made market participants hopeful about future
improvement. But the reason behind these purchases was that inventory levels have
decreased currently. Some believe that these transactions seem just
speculation. And this positive trend won’t continue longer.
Other long products were down around
Rials200,000/mt with market in a quiet trend.
Flat Products
HRC price
was upward by around Rials500,000/mt in first half of last week to Rials17.3
million/mt on truck in Anzali including 9% VAT and custom duties, but started
dropping again to reach Rials16.9 million/mt by end of the week. Such up and
downs are often happening in this market. Many market participants think HRC
market will be more upward in coming future as import costs have increased. HRC
would be imported with exchange Room allocated currency which had been more
limited currently.
Import offers are around USD390/mt cfr
Northern ports and USD395-400/mt cfr Southern ports. Importing HRC from China
is more profitable at the moment and there are traders willing to do so. Supply
is expected to decline in coming month and price won’t decline.
HRC thickness 2.5-6 mm experienced a
stable week due to market leader Mobarakeh Steel controls. Price of HRC size
8-15 mm from Mobarakeh Steel Co declined around Rials100,000/mt. Its price from
other producers didn’t change as supply level was limited.
HRP market was stable as one of market
leaders stopped offering. Two import cargoes of HRC were offered by end of the
week at Northern port which may make market downward.
CRC market was down due to high supply
level. During last Iranian year significant import level of CRC made market
inventory upward. At the moment import level has declined. Its price has
declined to USD520/mt in global markets. Final cost price for importing CRC
would be Rials21 million/mt after custom duties and VAT which is not
interesting for importers.
As import level has been downward from 4
month ago, some market participants hope prices will bottom out in coming
weeks.
HDG market was down by Rials200,000/mt
with market in a quiet sentiment.
Ex-rate:
In Exchange Room : Rials 28,337
/1USD
In free market : Rials 33,300
/1USD
Iran steel service center