Billet
Billet price was almost stable during last week in Iran as long
products market was unchanged. Imported billet size 150 mm ( 6 mm length) was
Rials13.1 million/mt on truck in Anzali including 9% VAT. Domestic production
was Rials12.8-13.1 million/mt ex-work including VAT.
Long products market is in a waiting situation and many mills are
producing at minimum capacity. Though, lack of demand in billet market seems
realistic.
Some market participants expect market leader Khouzestan Steel Co
reduce its billet price in near future which will make long products market
also downward.
Long products
Long products market was unchanged during week 22. INSIG Co* Debar
average price dia 14-32 mm increased by just Rials42,000/mt to Rials14.875
million/mt. Average price of the same material from Esfahan Steel Co increased
by Rials45,000/mt to Rials14.988 million/mt ex-works including VAT.
Market was quiet during last week. While current meeting in Iranian
Steel Manufacturer's Association end in a logical decision which was about
higher export capacity of big mills. This policy will give small mills better
share of domestic market.
I-beam price improved a little due to Esfahan Steel Co strict
controls of market supply and lower production of other mills. I-beam size
14,16,18 mm increased by Rials117,000/mt to Rials16.717 million/mt. But Angle
and Channel price declined by Rials300,000/mt.
Generally market was quiet and unchanged despite better demand
level. The reason is lack of confidence in steel market as investment rate in
this industry in declining.
At least market participants are hopeful about results of last
week's meeting in Steel Manufacturer's Association, which shows steel producers
are uniting together to experience better days for steel market.
* Iran National steel Industry Group
Flat products
Hot rolled coil 2 mm thickness was downward harshly and is expected
to continue dropping. Its sale price declined by Rials500,000/mt to Rials15.5
million/mt on truck in Anzali including 9% VAT. In Imam Khomeini port price was
Rials15.3 million/mt including VAT. Currently cost price of importing HRC 2 mm
thickness in Northern Ports is around Rials15.3 million/mt but Rials 14.5
million/mt including 9% VAT and custom costs. Therefore, importing HRC to Imam
Khomeini Port would give traders better profit margins and can accept lower
prices. But in Northern ports traders will face loss as they are purchasing at
higher prices. Chinese products available at Southern ports is boron- added
alloy steel and have Rials1 million/mt lower custom tariff compared with CIS
products. Currently some Kazakh steel producers have been trying this policy as
Chinese producers to export alloyed products. This will pressure domestic
market and decline prices.
HRC 3-6 mm thickness is in limited supply but prices didn't change
significantly. Size 12 mm was also limited but buyers resist against higher
prices. Plate market experienced lower supply level from Oxin Steel Co, when
production level increase prices will decline in coming future.
CRC market was quiet and depressed. Importers are ready to sell at
more discounts but there is no interest from buyers.
HDG market was stable despite improvement in export level. Besides,
export level may decline in coming month due to summer season sadness and lower
demand during holy month of Ramadan in muslim countries.
Ex-rate:
In Exchange Room: Rials28,828 /1USD
In free market: Rials33,080/1USD
Iran steel service center