Billet
Billet market was downward during last week in Iran. Imported
billet size 150 mm ( with 6 M length) reached Rials13.1 million/mt on truck in
Anzali including 9% VAT down by Rials300,000/mt compared to a week ago.
Domestic product size 150 mm was offered at Rials13.15/mt ex-works including
VAT by small mills and Rials12.75 million/mt by market leader Khouzestan Steel
Co. domestic production size 125 mm was around Rials12.7 million/mt ex-work
including 9% VAT.
Market participants expect Khouzestan Steel Co billet price
continue downward in coming weeks. Long products market sentiment improved but
not enough to expect better situation in billet market. Besides, domestic
billet production has declined significantly currently.
Long products
By beginning of last week, Khorasan Steel Co declined its debar
price by Rials300,000/mt . Debar price of Esfahan Steel CO also declined By
Rials100,000/mt during last week, but INSIG co debar price was unchanged.
Other long products also experienced downward trend at around
Rials200,000/mt by average.
Market participants had a pessimistic view as demand is low and
market inventory level is high.
I-beam market tried to increase offers with some speculations
occurred. As some producers are cutting production of I-beam size 14 and 16 mm,
better sentiment in the market would be likely. By the way ,as demand is
limited, expecting significant improvements won’t be realistic.
Flat products
Hot rolled coil 2 mm thickness was downward during last week in
Iran. Its price at Anzali port declined by Rials300,000/mt to reach Rials16.2
million/mt on truck including 9% VAT. Price of HRC 2 mm thickness at Imam
Khomeini port dropped by Rials250,000/mt to Rials15.8 million/mt on truck
including 9% VAT. Price of HRC thickness 2.5-6 mm also declined by
Rials200,000/mt. Increasing import offers for sizes 6-15 mm made prices down by
Rials300,000/mt.
HRP price size 15 mm or higher was down by up to Rials300,000/mt
due to higher market competition for some sizes of Kavain Steel Co
products. Market price for Oxin Steel Co products was unchanged as supply level
was limited.
It was heard that two big import cargoes will be offered at IMAM
Khomeini Port in near future and will affect domestic market negatively.
CRC market was also declining as import level is rising and global
prices continue reducing.
HDG market was quiet and prices downward, some cheap import cargoes
will arrive in Iranian ports in near future which will make market sentiment
more depressed.
Ex-rate:
In Exchange Room: Rials28,690 /1USD
In free market: Rials32,970 /1USD
Iran steel service center