Billet
Billet price experienced around
Rials100,000/mt decline during last week in Iran. Imported billet size 150 mm
was Rials13.4 million/mt on truck in Anzali including 9% VAT and custom duty,
but sellers were ready to negotiate for more discount. Domestic billet size 150
mm was being offered at Rials12.8-13.15 million/mt, but no interest in buying.
Base price of Market leader Khouzestan Steel co billet at IME was Rials 12.02
million/mt excluding VAT, the same as
current last weeks. Lack of demand in long products market has forced many
billet producers to cut or stop production. This situation won’t improve in
coming weeks and is expected to make billet market more downward.
Long products
Long products market was stable during
last week in Iran. Average price of debar diameter 14-25 mm dropped by just
Rials10,000/mt to Rials 14.89 million/mt in Ahwas market in south of Iran.
Debar price of Esfahan Steel Co improved by Rials20,000/mt. I-beam price was
also stable despite some rumors about possible increase in price.
It seems that long products market has
bottomed and won’t drop more unless billet price decline significantly. But
billet market is also stable as it depends on scrap and DRI market sentiment
which has no space for more declines.
Stable prices have improved market
general sentiment as participants are not worried about more declines.
Therefore, transaction levels may improve in near future for restocking.
Flat products
HRC 2
mm thickness experienced slight downward trend in import market during
last week in Iran. Its price declined by Rials300,000/mt to Rials
16.4million/mt on truck in Anzali ( north of Iran) including 9% VAT and custom
duties. The product was offered at Rials16million/mt including Vat and custom duty. HRC thickness 2.5-15 mm
from market leader Mobarakeh Steel Co experienced harsh decline. Base price of
size 2.5-6 mm at IME dropped by Rials500,000/mt and size 6-15 mm experienced
Rials700,000/mt decline.
Market participants believe the reason of
this decline is global downward prices during last 6 months. The policy of market leader for such a
significant decline, made market ambiguous. Many traders with cargos in
warehouses became seller concerned about more possible declines. Market
sentiment became complicated as price gap of Rials500,000/mt was seen between different offers. Some Russian cargos for size 6-15 mm were
available by end of the week at Northern ports. Market participants hold wait
and see policy, hope for a stable situation in coming week.
HRP market also experienced
Rials100,000/mt decrease in price as demand level is limited.
CRC price dropped by Rials 400,000/mt at
IME by Mobarakeh Steel Co, which made market sentiment complicated. Import
level has declined but ports inventory level is high, therefore many traders
became seller. This made market downward trend harsher.
HDG market was also quiet with its base
price at IME drop by Rials500,000/mt. It’s expected to continue declining in
near future.
Ex-rate:
In Exchange Room : Rials 28.498/1USD
In free market : Rials 32.970/1USD
Iran steel service center