Billet
Billet market was downward
during last week in Iran. Domestic billet for size 150 mm declined by Rials
200,000/mt by Khouzestan Steel co to Rials 11.9 million/mt and Rials100,000/mt
by Arfaa Steel Co to the same price. Size 125 mm was heard around Rials
11.5-11.7 million/mt.
Currently Khouzestan Steel Co supply level has increased and its
price is around other producer’s offers. Market participants believe billet
price is near bottom and won’t decline significantly any more. But long
products downward trend has not stopped yet.
Long Products
Long products were downward during last week in Iran and is expected
to continue this trend in near future. Esfahan Steel Co debar diameter 14-25 mm
dropped from Rials 14.33 to Rials14.30 million /mt. Price of INSIG co debar
declined significantly from Rials 14.383 to Rials14.290/mt .
Average price of I-beam size
14- 18 mm was also downward from Rials16.633 to Rials 16.567 million.
INSIG co sold some cargoes
at cheap prices during last week which will be in retail market in coming days
and will make prices more downward due to competitive reasons.
Market participant think long products prices will continue
declining as other producer decreased its prices by Rials200,000/mt during last
week. Besides, the gap between billet and debar is Rials900,000/mt equal
to USD30-35/mt at the moment in Iran.
But it should be USD20-25/mt as other parts of the world. For correcting the
billet price small mills will be in trouble as big mill have government
support.
Flat Products
Price of HRC 2mm thickness was stable around Rials15.7 -15.8 million/mt on truck in Anzali including
9%VAT and custom duty. In Imam khomeini port price was Rials15.5 million/mt including
9%VAT.
A reason behind stable prices was unchanged market condition in CIS
and China. But Chinese price dropped by USD15/mt in Asian market, but
transaction prices with Iran is stable.
HRC 2.5-15 mm from Mobarakeh steel co declined by Rials10-30/mt.
Mobarakeh steel co supply level was limited but also demand was scarce.
In HRP market Kavian co declined its price by Rials 300,000/mt.
Oxin co also declined its price as expected by Rials500,000/mt to Rials18
million/mt. Higher supply level and increased market inventory made HRP market
downward. Besides, there is a gap between domestic and import prices, therefore
downward trend is logical.
In CRC market, lower import level, made market firm, some sizes
like 0.70 mm thickness was unavailable. Two Kazakh cargoes will reach domestic
market this week and Chinese offers will be available in Southern port in near
future. Generally CRC price was stable during last week.
HDG market was depressed during last week with its price declined
by Rials300,000/mt.
Ex-rate:
In Exchange Room: Rials 29,858 /1USD
In free market: Rials 33,480/1USD
Iran Steel Service Center