Billet
Billet market was downward during last week in Iran and domestic
production for size 150 mm was Rials11.8-11.9 million/mt ex-work including 9%
VAT.
Billet size 125 mm in domestic market was Rials 11.9-12.1 million/mt ex-work
including 9% VAT. It was upward due to lower production level. Market
participants believe this upward trend is a warning alarm for billet market
participants. Steel price is at the bottom and if steel market depression
continues, billet producers will be forced to reduce production more.
Long products
Average price of debar diameter 14-25 mm experienced downward trend
during last week in Iran from Rials14.31million to Rials14.27 million/mt
ex-works including 9% VAT. The price for same material from Esfahan Steel Co
dropped by Rials60,000/mt.
Price of I-beam size 14,16,18 mm from Esfahan Steel Co increased due to
producer’s policies in the market.
Other long products were up by Rials100,000-150,000/mt due to
production stoppage at one angle and channel mill for maintenance and higher
billet price used as a raw material for them.
Generally long products market was fluctuating and market participants
don’t expect significant change in prices as demand is scarce.
Flat Products
HRC 2 mm
thickness was upward during last week in Iran and was offered by beginning of
the week at Rials15.5 million/mt on truck in Anzali including 9% VAT and around
Rials100,000/mt lower in Imam Khomeini Port. The reason behind upward trend in
middle of the week was that despite stoppage of importing HRC 2 mm thickness
with exchange office currency allocation, still some traders have import
allocation from the past in their hand with exchange room currency rate. They didn’t
buy the material due to downward trend in global markets, but the quantity of these
orders is limited. HRC 2 mm price is expected to increase in coming weeks as
import should be done with free market currency rate.
Price of
HRC thickness 2.5-15 mm declined by Rials100,000-200,000/mt despite shortage of
some sizes like thickness 8-15 mm from Mobarakeh Steel Co.
In HRP
market, price of thickness 12-40 mm from Kavian Steel Co declined to Rials17.1
million/mt and made Oxin co products drop by Rials200,000/mt despite limited
supply level.
In CRC
market limited supply level is apparent. The reason is that currency allocation
for importing this material has been stopped from exchange office and should be
imported by free market rate.
Import
price for CRC is USD420/mt cfr Northern or Southern Iranian ports and is not
expected to decline significantly outside Iran. Besides, domestic leader
Mobarakeh Steel Co is not supplying this material regularly in the market and
some sizes are in shortage, therefore, price increase is inevitable for some
sizes. Demand level is scarce but prices are at the bottom too and more
downward trend in prices seems impossible.
HDG
market was downward like current previous weeks and dropped by
Rials100,000-200,000/mt.
Ex-rate:
In Exchange Room: Rials29,960 /1USD
In free market: Rials33,810 /1USD
Iran
Steel Service Center