Billet
Billet market was downward during last
week in Iran. Domestic billet size 150 mm was around Rials12.2-12.5 million/mt
ex-works including 9% VAT. Size 120 and 125 mm were also Rials11.8-11.9
million/tm ex-works. Generally domestic demand level is limited. This downward
trend is due to lack of demand in long products market.
Imported billet price is down at
USD300-3100/mt cfr Anzali Port, which after releasing from custom office and
VAT would costs Rials12 million /mt for importers. Global prices are downward
and this has made Iranian importers worried. Therefore they prefer stop import
activities.
During last week government authorities
announced that price of iron ore pellet and DRI has declined by 3% for this
year contracts. Billet pricing policy of market leader Khouzestan Steel Co is
related to iron ore pellet and DRI, market participants expect billet base
price also decline in near future. Therefore they prefer move cautiously.
Long products
Long products were downward during last
week in Iran. Khouzestan Steel Co declined its debar price by beginning of the
week by Rials200,000/mt and Esfahan Steel Co sold 80,000 of its debar &
I-beam at Rials14.5 million/mt base price. Market participants took this as a
sign for downward trend continue. Price of I-beam size 20 mm or higher was
upward during last week but its demand level was fixed. Policies of market
leader Esfahan Steel Co and its other colleagues for controlling supply level
have made I-beam market upward when the situation is not good. If the situation continues, importing the
material from Turkey or Spain would be logical and competitive. Though, market
participants believe domestic producers should change their current policy.
Average price of debar diameter 14-25 mm
dropped by Rials50,000/mt to Rials14.483million/mt ex-work including VAT.
Downward trend is expected to continue in near future.
Other long products prices were also down
by Rials100,000-200,000/mt during last week in Iran. Inventory levels have
declined significantly, besides buying interest is scarce, therefore cash
problems at steel mills will continue.
Flat Products
Price of hot rolled coil 2 mm thickness
was stable during week 30th in Iran. It was Rials15.5million/mt on
truck including VAT in Anzali port and Rials15.1-15.2 million/mt of truck
including VAT in Imam Khomeini port.
HRC price is stable due to;
1- Stable global prices
2- Import level has become limited
because is not profitable
3- Cost price has increased due to higher
currency rate at exchange office
Last week had 3 working days after
Ramadan holidays. Supply level of HRC thickness 10 mm or higher was limited,
but increased from Wednesday. Mobarakeh Steel Co sold 18145 mt of it HRC
thickness under 4 mm and 45,000 mt of thickness higher than 4 mm. These sales made
market pressure lower. Price will decline in coming weeks.
HRP price declined by Rials100,000/mt
during last week. Expecting lower prices in coming weeks made market leaders
increase supply level especially Kavian Steel Co
Import HRC offer of Chinese suppliers in
Iran has declined by USD30/mt recently, import cost price would be Rials15.5
million/mt. Some cheap offers from Dubai has made Iranian market participants
worried about lower prices in coming weeks.
CRC market was unchanged and transaction
levels were limited as Ramadan Holidays made working days lower. Demand level
is also limited. Last week Mobarakeh Steel Co sold just 3127 mt CRC at IME. But
CRC is a raw material for many industry sections; this show market is under
pressure. CRC monthly import level had been limited this year not more than
23,000 mt a month.
HDG market was stable but very quiet and
downward pressure will continue in coming weeks.
Ex-rate:
In Exchange Room: Rials29,566 /1USD
In free market: Rials32,780/1USD
Iran steel service center
25 July 2015