Billet
Billet price was down by Rials100,000/mt
during last week in Iran. Billet size 150 mm from domestic producers was heard
around Rials13-13.2 million/mt ex-work including 9% VAT. Offers from Khouzestan
Steel Co were around Rials12.8milion/mt ex-work including 9% VAT for 1000 mt
parcels. Domestic billet size 120 mm was Rials12.2million/mt ex-work including
VAT, but production level has declined significantly.
Rumors were heard about more declines in
HBI market in Iran, in near future. If so, billet price will continue downward
trend too.
Long Products
Long products were a little downward
during last week. Debar diameter 14-25 mm declined around Rials70,000/mt to
Rials14.97million/mt ex-work Ahwaz including 9% VAT. Same material in Esfahan
market dropped from Rials15.186million/mt to Rials15.092million/mt ex-work
including 9% VAT. Khorasan Steel Co sold its debar at base price of Rials14
million/mt excluding VAT. Final price after including VAT would be more than
Rials15.25million/mt. But latest offer price of the same material in retail
market has been Rials15.20million/mt ex-work including 9% VAT.
By end of last week debar price became
upward due to two main reasons including:
1- Market expectation that prices have
bottomed, although some participants do not accept it
2- Low inventory level. But traders still
are ordering at small quantity and move cautiously. Stoppage of small billet
producers and lower production at many section mills has made market almost
balanced. Besides higher debar export rate has helped market sentiment.
I-beam size 14,16 and 18 mm from Esfahan
Steel Co experienced around Rials434,000/mt decline during last week in Iran to
Rials16.583 million/mt ex-works including 9% VAT. Downward trend is expected to
continue in near future. Other long products were also down around
Rials200,000/mt and will continue this trend in coming week.
Flat products
Hot rolled coil 2 mm thickness was down by
Rials150,000/mt to Rials16.45million/mt on truck in Anzali including 9% VAT. It
seems that custom office has accepted that this material import duty has not
increased like other sizes of HRC, though its price will be downward in coming
weeks.
HRC thickness 2.5-6 mm were also down by
Rials100,000/mt, with supply level limited. Besides, consumers have stopped
buying due to their production cut. At the moment this market is not interested
for investors as there is no profit in it.
HRP market was also down by Rials100,000/mt. Besides,
new offers from China and CIS at Southern and Northern ports in coming days,
will affect market trend.
CRC market was down by Rials300,000-500,000/mt . Supply
level of thickness 0.70 mm or lower was limited but is still higher than
demand. Global prices are down to USD440/mt CFR Iranian ports, so traders are
looking to reduce inventory level as improvement in prices seems unlikely.
HDG market was stable during last week in Iran, but
demand is still weak.
Ex-rate:
In Exchange Room : Rials 28,368
/1USD
In free market : Rials 33,350 /1USD
Iran steel service center