Billet
Khouzestan Steel Co reduced its billet
price at IME by Rials500,000/mt during last week as expected. Its billet size
150 mm had reached Rials12.2 million/mt including 9% VAT in retail market and
base price reduction had been anticipated.
Generally billet size 150 mm was
Rials12.2-12.5 million/mt ex-works depending on the producer.
At the moment some domestic mills are in
summer stoppage and production level is not expected to change significantly
when they come back. Besides, imported billet CIS origin is not lower than
USD300/mt cfr Iranian ports; therefore it is not affordable for importers.
Domestic production at current prices is not profitable for the mills and may be
forced to cut production in coming future.
Long products
Long products were downward during last
week in Iran. Two main reasons behind this trend were:
1- Lack of demand especially in current
weeks, everybody is in wait and see policy. Transactions have almost stopped.
2- Reducing billet base price by market
leader Khouzestan Steel Co, which will be followed by other mills in near
future.
These two factors made long products price downward
during last week except I-beam. Downward trend will be more visible in coming
days. But for I-beam, low supply level from Esfahan Steel Co especially for
size more than 20 mm made price up. For sizes lower than 20 mm especially 14
mm, there are alternative producers in the market and would be difficult for
the market leader to increase its price by low supply policy.
Flat Products
Hot rolled coil 2 mm thickness was almost
stable during last week at Rials15.5 million/mt on truck in Anzali including 9%
VAT. Foreign suppliers have reduced prices but import level has declined as it
is not profitable any more.
For HRC thickness 2.5-15 mm from
Mobarakeh Steel Co, prices were downward affected by current weeks higher
supply level. Everybody was in waiting policy, but service centers increased
offers level. This trend made HRC market down by Rials 200,000/mt, which is
expected to continue as demand level is scarce.
HRP market was almost stable during last
week, but market participants expect downward trend in near future. Market
leader Oxin steel co is trying to stabilize prices by lower supply , but lack
of demand and lower prices in global markets has made downward trend
anticipation more likely.
CRC market was unchanged, except for
thickness 50 mm which higher supply level from Mobarakeh Steel Co made its
price lower. HDG market was also depressed with its price decline by
Rials200,000/mt.
Ex-rate:
In Exchange Room: Rials 29,708 /1USD
In free market: Rials 33,440/1USD
Iran Steel Service Center