Billet
Billet market was almost stable during last week in Iran. Imported
billet size 150 mm was Rials12.95 million/mt on truck in Anzali including 9%
VAT. Domestic production size 150 mm was also around Rials12.65-13 million/mt
ex-work including VAT, but offers were limited. Khouzestan Steel Co was not
offering seriously but nominal price was Rials12.6 million/mt. Other domestic
producer Arfaa Steel Co was also offering at same price. Billet size 125 mm in
domestic market was Rials12.3-12.6 million/mt ex-work including 9% VAT.
During last 2 weeks, scrap price has declined in some cases up to
Rials1 million/mt in Iran market. Besides, debar price was down up to
Rials200,000/mt but there has been no significant change in billet market. The
reason behind stable prices of billet is low supply level. Long products mills
profit margin is near almost zero, therefore billet price should drop in coming
future. As many steel mills production level will decline in near future due to
coming holidays, billet price will also change.
Long products
Long products market was almost unchanged
during last week. Debar diameter 14-25 mm in Ahwaz market was stable at
Rials14.633 million/mt ex-work including 9% VAT. In Esfahan market debar price
declined a little from Rials14.8 million to Rials14.625 million/mt.
I-beam size 14,16 ,18 mm decreased by
Rials70,000/mt to Rials16.93million/mt ex-works including VAT.
There were many reasons behind stable
long products market, including:
1- Prices have reached the bottom and
there is no space for significant change in prices. Therefore, they change by
Rials100,000-200,000/mt.
2- Market participants are in wait and
see policy. Everybody prefers waiting for final results of nuclear talks and move
cautiously.
3- The other reason for market depression
is seasonal lack of demand and coming holidays which has affected demand level.
Flat Products
Hot rolled coil 2 mm thickness was
Rials15.45million/mt on truck in Northern ports and Rials15.1 million /mt on
truck in Southern ports by beginning of last week . Prices ended the week at
Rials15.6million/mt in Northern ports and Rials15.3 million/mt in Southern
ports due to low supply level.
A big parcel of HRC is loading at
southern port and offers at Northern ports will increase in coming weeks. But
as global price of HRC has not changed significantly currently and import
margin is not much, so HRC price won’t decline significantly in Iran market in
near future.
It is expected that HRC price decline
gradually up to Rials1million/mt in coming month, when imported alloyed parcels
arrives. Price of other sizes of HRC was stable with 8-15 mm thickness in lack
of supply.
HRP thickness 15 mm or higher, was offered
by Oxin Co in domestic market at around Rials18.6 million. HRP products of
Kavian co is also being offered slowly, for example width 1.25 m was in limited
supply and width 1.5 m was not being offered at all.
CRC market was stable and supply level is
limited. Cheap cargoes will be offered after Holly month of Ramadan ( end at 19
July) which will affect market trend.
In HDG market price was down by
Rials200,000/mt despite low supply level.
Ex-rate:
In Exchange Room: Rials29,399/1USD
In free market: Rials33,270/1USD
Iran steel service center