Billet
Billet market was almost stable during
last week in Iran. Billet size 150 mm from Khouzestan Steel Co was offered at
around Rials11.8 million/mt ex-work including 9% VAT. Supply level by most
producers was lowered by middle of the week.
Domestic billet size 125 mm was being
transacted at around Rials11.7-11.9 million/mt ex-work including 9% VAT.
Transactions level was limited as long products demand has decreased.
Market participants move cautiously at
the moment as there are rumors in the market about downward forecast for billet
price. It won’t be impossible if Khouzestan Steel Co decline its billet price
in near future.
CIS origin billet was being offered at
3000-5000 MTNS parcels during current week. Buyers were bidding at USD280/mt
cfr Northern ports. Oil and iron ore
market sentiment is not positive; therefore there is no reason for improvement
in billet price in near future.
Long products
Long products market was quiet during
week 37th and prices didn’t change significantly. Average price of
debar diameter 14-25 mm reduced by just Rials100,000/mt to Rials13.9 million/mt
ex-work Ahwaz including 9% VAT. Esfahan Steel CO debar price was stable at
Rials14.3 million/mt ex-work including 9% VAT. Average price of I-beam size
14-18 mm by Esfahan Steel Co increased from Rials16.583 million to Rials16.617
million/mt due to the mill controlling policies.
Generally long products market was
depressed, due to seasonal factor. Many market participants are in summer
holiday and transactions level has declined. The main reason is definitely lack
of real demand in steel market.
Flat products
Hot rolled steel coil 2 mm thickness
passed an almost stable week. It was Rials15.6 million/mt on truck in Anzali
port and Rials15.25 million/mt on truck in Imam Khomeini port including 9% VAT.
It finished the week around Rials50,000-100,000/mt lower. In import market CIS
origin was USD350-360/mt cfr and Chinese one at Rials355/mt cfr Iranian ports.
Import level during last Iranian month (23 Jul-22 Aug ) was 11,000 lower month-
month to 66,825 tones. HRC import has low margin for importers, therefore
investors are not interested any more. For sizes 2.5-15 mm, domestic prices
were stable as market leader Mobarakeh Steel Co controlled supply level.
Importers of HRC thickness 2.5-4 mm were successful in selling their cargoes at
Rials16 -16.2 million/mt including 9% VAT.
Kavian Steel Co increased HRP supply
level for different sizes from 10 to 50 mm. Some sizes were around Rials15.6
million/mt for width 1.25 mm. This trend affected Oxin co market too. Oxin HRP
sale price dropped to Rials18.2 million/mt ex-work with 9% VAT , but retail
market price was heard in some cases as low as Rials17.6 million/mt. Downward
trend is expected to continue.
Flat products will continue downward trend in coming future as
there is around Rials5million/mt gap between Khouzestan Steel Co slab and hot
rolled products. The gap is also not the same as billet- debar difference.
Besides, flat products demand level is downward and will made prices decline
more.
CRC market was quiet. CRC import level has increased by 12,157 tons
m-m to 31,184 tones during last Iranian month. Two factors affected CRC import
market currently. Firstly, currency allocation from Exchange Office has been
stopped. Secondly, lower global prices especially from China have made import
level increased. Chinese CRC is USD380/mt cfr Imam Khomeini port. Just around
25,000 tones of CIS CRC have been purchased at USD420/mt cfr Northern ports
shipment in September- October.
HDG price declined by Rials300,000/mt and the market was depressed.
Ex-rate:
In Exchange Room: Rials29,954
/1USD
In free market: Rials33,850/1USD
Iran Steel Service Center