Billet
Billet market was slightly down with size 150 mm from
domestic leader Khouzestan Steel co reaching Rials11.7 million/mt ex-work
including 9% VAT, down by Rials200,000/mt. Other domestic producers were offering
at Rials11.8 -12.2 million/mt ex-work including VAT. Generally, market was
quiet and demand limited.
Russian billet sellers were checking Iran market with
some offers, looking for real bid price of Iranian importers. Lower Ruble rate
against Dollar, quiet economic view and winter season near, has made CIS billet
producer more interested in increasing export level. But in Iran, billet
importers bid price won't be higher than USD280/mt cfr Northern ports as
domestic billet price is downward and their cost price after clearing the cargo
from custom office would be Rials11 million//mt. Therefore, USD280/mt would be
logical price for import. Apart of that, at the moment there is no interest in
importing billet at all.
Long Products
Long products market passed a quite depressed week
with market participants just waiting for a clear direction. As demand level is
significantly related to government projects, demand was also scarce.
Debar price dropped by Rials100,000-150,000/mt.
Khorasan Steel Co started the week with Rials200,000/mt decline and this trend was
followed by other producers like INSIG co which declined its price the same by
Rials200,000/mt.
Price of I-beam size more than 20 mm increased a
little, just due to market leader Esfahan Steel Co controlling policies not
better demand. This made market sentiment better for some producers which are
offering I-beam 30% cheaper than Esfahan
Steel Co.
Other long products were downward. Angle price
declined by Rials400,000/mt. Channel price also declines. Imported channels
from Turkey were also down by Rials200,000/mt despite problems after closure of
Sero frontier and higher ex-rate.
Market participants expect long products continue
decreasing in near future as a rumor about lower billet price by
Rials300,000-500,000/mt was scattered in the market. Whether this rumor is true
or not, would affect long products market due to lack of demand.
Flat products
Imported HRC 2 mm thickness experienced
Rials200,000/mt decline to reach Rials15.6 million/mt on truck in Anzali port
including 9% VAT. Chinese product in Imam Khomini port was also down by
Rials100,000/mt to Rials15.4 million/mt on truck including 9% VAT. Higher
supply level and lack of demand made prices downward.
Price of HRC thickness 2.5-6 mm from Mobarakeh Steel
Co declined by up to Rials300,000/mt depending on supply level. For thickness
2.5 mm decreasing level was significant but for thickness 4 mm it was just by
Rials100,000/mt. Sizes 8-15 mm from Mobarakeh Steel Co had a stable market but
the story for Kavian and Oxin co products was different.
Kavian HRP dropped to under Rials17 million/mt by last
Saturday and Oxin HRP also started declining by Sunday to reach Rials18
million/mt or lower by end of the week. This downward trend will continue as
Rials1 million/mt gap between prices of these two mills is not logical.
CRC ,market was stable during the week, but demand is
still limited. Importing CRC is not economically affordable for importers
therefore import inventory level has declined currently. Import offers have
also decreased to USD410/mt CFR Northern ports. There had been good orders by
Russian and Kazakh mills at this price which will arrive Iran 2 months later.
Koreans are also offering at around same price.
HDG market was also quiet and experienced
Rials200,000/mt downward trend during week 36th.
Ex-rate:
In Exchange Room: Rials29,959
/1USD
In free market: Rials34,110/1USD