Billet
Billet price was a little downward during last week in Iran.
Billet size 150 mm from domestic leader Khouzestan Steel Co was transacted at
Rials12.3 million/mt ex-work including 9% VAT. But base price of the mill was
fixed at Rials12.02 million/mt . Other producer Arfaa Steel Co offered its
billet at Rials 12.5 million/mt ex-work including VAT unchanged compared to a
week ago.
Billet size 125 mm from domestic producers was offered at
Rials 11.6-11.9 million/mt including 9 % VAT.
Generally, billet transaction level was limited during last
week due to long products market poor condition.
During last week scrap price increased in Iran as seasonal
sadness of the market beside lower collection level due to lack of workers made
supply level limited. Many scrap collectors go to their villages in summer time
for working in farms.
Long Products
Long products market was downward during last week due to
lack of demand. Esfahan Steel Co controlled supply level and this policy made
I-beam size 14,16 and 18 mm up from Rials16.632 to Rials16.783 million/mt, but
this rise in price was so much limited at Rials151,000/mt
Debar price dropped by Rials100,000/mt and is expected to be
downward this week too. Generally, market sentiment is downward. Market
participants expect billet price decline as currently price of HBI and Iron ore
pellet has declined by government authorities.
Everybody prefers just watching the market in this situation.
Profit margins are so much low, so investors are not interested at all. Long
products average price has been backed to around 3 years ago, but production
costs have been increased so much during this time. Therefore there is no
interest for investment in this market at the moment.
Flat Products
Flat products were almost stable during last week in Iran.
HRC 2 mm thickness was Rials15.6 million/mt on truck in Anzali including 9%
VAT, unchanged. Domestic HRC price was also stable, but is expected to decline
in coming weeks as cheaper price HRC from Mobarakeh Steel co will be offered.
Besides, Chinese HRC thickness 6-40 mm was offered in Southern ports with no
buyer as prices were high.
CRC market was stable as supply level was limited. Ports
inventory level has been limited and import prices cannot compete with domestic
leader Mobarakeh Steel co at the moment. Import level is downward. Kazakh
origin CRC is USD430-435/mt cfr Northern Ports which will cost Rials17.5 -18
million/mt including custom duty and VAT for importer. It is not interesting
for importers as it has no profit margin for them.
HDG market was also quiet, but prices were unchanged as CRC
supply level is limited. Mobarakeh Steel Co sold 1,538 tone HDG at
Rials19.752/mt base price. Demand level is unlikely to change in coming weeks.
Ex-rate:
In Exchange Room: Rials29,599 /1USD
In free market: Rials33,120/1USD
Iran Steel Service Center