Billet
Billet market experienced an almost
stable week in Iran. Imported billet size 150 mm declined by just
Rials200,000/mt to Rials12.9 million/mt on truck in Anzali including 9% VAT and
custom duty. Market was down due to lack of demand, lower ex-rate and decline
in offers from CIS suppliers.
Domestic billet was down around
Rials100,000/mt during last week. Market leader Khouzestan Steel Co offered its
billet at Rials12.7-12.8 million/mt ex-work including VAT, but no buying
interest.
Billet Market participants don’t forecast
any improvement in near future as Holy Month of Ramadan has arrived and will affect
demand level negatively. Besides, lower ex-rate and downward iron ore price are
other factors behind this pessimistic view.
Real demand is limited and any decline in
prices won’t lead to higher sales level.
Long products
Long products market was unchanged during
week 25th in Iran. Debar diameter 14-25 mm was stable at
Rials14.75million/mt ex-works including 9% VAT in Ahwaz market. The same
product from Esfahan Steel Co increased from Rials14.87 million/mt to
Rials14.958million/mt ex-works including VAT. Price of I-beam size 14,16,18 mm
also decreased from Rials 17.35 million to Rials17.232million/mt ex-works
including VAT.
Some longs producers are closed and some
have cut production level, but there is no significant change in prices due to
lack of demand. Market would be quiet during Holy Month of Ramadan, and market
participants are waiting for final result of nuclear negotiations of Iran with
5+1 group.
Khorasan Steel Co offered its debar
basket at IME at base price of Rials13.7 million/mt with no buyer interested.
Reason is that there are cheap cargoes available in the market as 6400 mt of
debar dia 12-25 mm from Esfahan Steel Co was sold at Rials13 million/mt , which
is Rials700,000/mt cheaper than Khorasan Steel Co offer. Generally long
products market is quiet at the moment with no hope for any significant change
in near future.
Flat products
HRC 2 mm thickness experienced fluctuations during last week in
Iran. It started the week at Rials15.6 million/mt on truck in Anzali including
9% VAT and custom duty. Then increased a little but again dropped to
Rials15.4million/mt by middle of the week . Finally it was back to initial
level by end of the week. The same material was around Rials15-15.1 million/mt
including VAT and custom duty in Southern ports.
Currently Mobarakeh Steel Co has stopped offering HRC2.5 mm and
higher thickness, to protect its market share. This policy made prices up by
Rials400,000/mt, but demand level is low and buyers didn’t accept such a rise.
Besides, there were alternative materials available to support demand level.
Mobarakeh Steel Co sold 4,700 mt of its HRC class B at IME at base
price of Rials16.2 million/mt, which is around Rials17.58million/mt after 9%
VAT and other costs for the buyer. But the same material is retail market is
available at Rials17.2million/mt including VAT.
Therefore, some market participants believe that supply cut by the mill
is due to lack of interest in buying its products during last 6 months.
By the way, no matter what is the real reason of supply stoppage,
it has not affected prices significantly as there is no demand. If import of
cheaper Chinese products increase, it will affect Mobarakeh Steel Co market
share.
HRC thickness 8-15 mm from Mobarakeh Steel co was not being
offered by the producer, though, its price rose by Rials200,000/mt.
Domestic flat products market was upward during last week due to
lack of supply from market leader Mobarakeh Steel Co, temporary production
stoppage at Oxin co due to technical problem and lack of supply from Kavian Co.
But market participants believe this situation will improve in near future and
make prices balanced.
CRC market was a little downward by
Rials100,000-200,000/mt. Market inventory level has declined as downward
Chinese CRC prices has made importers in waiting policy. Many importers also
have stopped working in this market due to last year losses. Therefore CRC
monthly import level is around 20,000 mt at the moment which is in balance with
demand level at the moment.
HDG market was also down by
Rials300,000/mt during last week in Iran with the market in a depressed
situation.
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Ex-rate:
In Exchange Room: Rials29,160 /1USD
In free market: Rials32,820 /1USD
Iran steel service center