Billet
Billet market was quiet during last week in Iran as long weekend
and Ramadan sadness depressed market activity. Some traders were ready for
discounts, but there was no interest in buying. Besides, long products prices
has been almost stable currently, therefore there is no reason for rise in
billet price.
Some market participants think the reason behind stable price of
billet could be a policy by market leader, Khouzestan Steel Co as has
experienced lower profit margins currently.
Long products
Long products prices were almost sideway or a
little declining during week 28th. Market participants stay out of
market due to lower ex-rate. Also they are still waiting for final results of
nuclear talks and Holly month of Ramadan has affected activities.
By last week Iran long products market
experienced something new as Iranian National Tax Administration offered
Esfahan Steel Co origin I-beam at IME. It is strange for market participants
when a state organization offer steel at IME despite doing its regular
responsibilities.
Flat Products
Flat products prices were stable till middle of
last week with HRC 2 mm thickness at around Rials15.5 million/mt on truck in
Anzali and Rials15.3 million/mt on truck in Imam Khomeini Port including 9% VAT
and custom duties. But by Monday last week, market leader Mobarakeh Steel Co
changed its fixed price policy after around a year and made its prices near
retail market prices.
Price of HRC thickness 2.5-3.5 mm reduced by
13% or Rials2.1 million/mt to Rials14.1 million/mt ex-work including VAT. HRC
thickness 4 mm or higher dropped by 12 %, from Rials16.35 to Rials14.35
million/mt.
CRC price experienced 10% reduction equal to
Rials2.3 million/mt to reach Rials17.5 million/mt ex-work including VAT. HDG
base price also decreased by 10% at IME to Rials19.752million/mt.
The reason behind new decision of the market
leader is that some big sellers currently have pressured government authorities
and Mobarakeh Steel Co for its high prices. Besides, lower global prices had increased
import market competitive strength currently and Mobarakeh Steel Co felt danger
of losing its market share. Lack of demand and lower prices pushed market
leader to change its policy.
Market participants expect downward trend in
flat products market will continue. Around 79,000 tone of flat products were
offered at lower price at IME by last week but just around 12,000 tone of it
was purchased.
Kavian Co HRP was scarce in the market, but
market participants anticipate higher supply level by Oxin co in coming days,
after current decision of Mobarakeh Steel Co.
CRC retail market was quiet and prices were
down by Rials100,000/mt. HDG market was also depressed. Every body is waiting
for market trend in coming weeks.
Ex-rate:
In Exchange Room: Rials29,437/1USD
In free market: Rials32,610/1USD
Iran
steel service center