Billet
Billet price dropped by around Rials100,000/mt during last week in
Iran.
Domestic billet size 125 mm was unchanged at Rials12.6 million/mt
ex-work including 9% VAT and also imported billet size 150 mm unmoved around
Rials12.9million/mt on truck in Anzali including VAT and custom tariff. But
Price of domestic production billet size 150 mm declined by Rials100,000/mt to
around Rials12.6-12.8 million/mt ex-work including VAT.
Market leader Khouzestan Steel co offered 70,000 tones of its
billet by last Wednesday at IME with base price of Rials12.02 million/mt (
excluding VAT), but sold just 6,500 mt of it. Billet market current
stable situation is due to supply- demand balance. Long products demand has hit
the bottom, so billet demand is at the minimum level. Some market participants
expect further Rials500,000/mt decrease in billet price in near future. But it
won’t increase any interest in buying as many sources expect.
Long products
Debar price was almost stable during week 24th in
Iran domestic market. As average price of Esfahan Steel Co debar diameter 14-25
mm was unchanged at Rials14.925million/mt ex-work including 9% VAT. The same
size from INSIG co was around Rials14.750million/mt. I-beam price also
didn’t change significantly despite some speculation activities. I-beam size
14-18 mm from Esfahan Steel Co declined just by Rials27,000/mt to Rials17.033
million/mt ex-work including 9% VAT. Other long products were also unchanged
during last week. Some sizes of angle dropped by Rials200,000/mt and channel by
Rials100,000/mt.
Long products market is at the bottom in Iran, therefore, many
producers unable to reduce prices more, prefer declining production level and
working at lowest capacity utilization. Many long products especially debar are
priced at same level as 3 years ago, despite the fact that production costs has
increased at least 30% during this time.
Many investors have leaved Iran market during last year and a
long term stable market situation is needed to make them back to Iran steel
market.
Flat products
Hot rolled coil 2 mm thickness experienced some fluctuations during
last week in Iran. It started the week at Rials15.4million/mt on truck in
Anzali including 9% VAT , then increased by Rials450,000/mt . But finished the
week lower at Rials15.6 million/mt on truck in Anzali including VAT. The reason
behind price improvement was the rumor about stoppage of currency allocation from
exchange room for importing this material.
Some market participants believe price will be back to
Rilas15.4 million/mt in coming future as seasonal weakness is demand in
near and Holly Month of Ramadan is coming (begin at 18 June ).
Some market speculations happened during last week for HRC 2.5-15
mm thickness. By Wednesday there was no seller in the market. But definitely it
was not due to lack of market inventory. Many sources believe it was a policy
by Mobarakeh Steel Co to increase its sales level at IME before Holly month of
Ramadan.
Kavian Steel Co HRP price also increased by Rials200,000/mt during
last week due to supply shortage of the other market leader Oxin co during last
one month. Market participants expect HRP price from Oxin co increase in coming
days.
CRC market was depressed and prices were almost stable. Some
declines happened in prices by beginning of the week but market was unchanged
from middle of the week onward. Some newly cheap purchased cargoes of CRC will
arrive in Iran market after Ramadan ( around 40 days later), Therefore, many
CRC traders in Iran prefer reducing their inventory level before any reduction
in price. This policy will affect market sentiment and make prices continue
downward trend.
HDG market was stable as its price has reached the bottom currently
and market is quiet.
Ex-rate:
In Exchange Room: Rials 29,050
/1USD
In free market: Rials 33,060 /1USD
Iran steel service center