Billet
Billet market was
almost stable during last week in Iran. Domestic billet size 150 mm was
Rials12.7million/mt ex-work including 9% VAT and imported material was
Rials12.9-13 million/mt on truck in Anzali including VAT. Domestic billet size
125 mm was also around Rials12.5-12.7 million/mt ex-work including VAT.
Supply - demand
level is balanced, besides long products market is quiet. Generally market
sentiment is depressed with low transactions levels due to Holly month of
Ramadan and ongoing nuclear negotiations. Significant change in market
condition seems unlikely in near future.
Billet market
depression made scrap price also downward during last week. But billet demand
is still unchanged. There are some rumors in the market about possible decline
in billet price from market leader Khouzestan Steel Co. This condition won’t
let billet market be stable and would be easily affected to such news.
Long products
Long products were almost unchanged during week 26th.
Debar diameter 14-25 mm declined by just Rials17,000/mt to Rials14.633million/mt ex-work Ahwaz including
VAT. Same material in Esfahan Market dropped by Rials32,000/mt to Rials14.818
million/mt.
I-beam size 14-18 mm decreased from Rials17.1 million/mt to
Rials17.033 million /mt . Sizes 14,16 and 18 mm experienced higher supply level
and this made market quiet. But big sizes were is low supply and their price increased.
Market leader Esfahan Steel co sold 6,700 tone of its debar and 4,000
tone I-beam during last week. Market will experience lower prices as we are in
Holy Month of Ramadan which traditionally affect demand level. At the moment
main problem in long products market is lack of liquidity as many investors
stay out of market for final result of nuclear negotiations.
Flat products
HRC 2 mm thickness had a stable market. CIS origin import offer was
Rials 15.4-15.5 million/mt on truck in Anzali including 9% VAT and custom duty.
Chinese product at Imam Khomini port was Rials15.1 million/mt on truck
including VAT and custom duties. HRC thickness 2.5-6 mm was also stable.
Market leader Mobarakeh Steel co is asking authorities to increase
import tariffs. Global prices are downward so the spread between Mobarakeh
Steel Co prices at IME and import cargoes is rising.
If Chinese HRC reach USD350/mt cfr Imam Khomeini Port, its finished
price after custom duties and VAT would be Rials13.5million/mt but market price for domestic product is more
than Rials17.65 million/mt. The mill has not changed its price for a year and
it should change its policy for competing with import market or asking
government for supporting him with higher tariffs.
Limited supply level for sizes 8-12 mm from Mobarakeh
Steel Co made prices improved but market participants expect lower price due to
import cargoes availability from Russia.
Besides, there is no demand. Oxin co offered HRP at Rials100,000/mt
lower than a week ago and Kavian Co supply level is still limited.
CRC market was gradually slowing during last week. Supply
level was limited which seems it was a policy by some traders. Global prices
are downward, ex-rate is declining, and therefore there is no reason behind any
price improvement. Besides, many mills are trying to get rid of available
stocks due to lack of liquidity. Totally, CRC price dropped by Rials300,000/mt.
HDG market experienced higher domestic supply level due
to slower export rate. Its price was down by around Rials300,000/mt during last
week.
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Ex-rate:
In Exchange Room: Rials29,275 /1USD
In free market: Rials 33,010 /1USD
Iran steel service center