Billet
Iran Billet market price declined during last
week following global markets’ downward trend continued. Chinese billet have
reached USD240-270 /mt FOB and Turkish material around USD260/mt FOB. These
downward trends actually have affected Iran billet export level and its price.
Price of Khouzestan Steel Co billet size 150 mm
decreased by Rials200,000/mt to Rials11.5 million/mt ex-works including 9% VAT.
Private mills were not selling their billet size 150 mm at lower than
Rials11.7million/mt ex-works including 9% VAT.
By end of the week, Khouzestan Steel Co sold
its billet at base price of Rials11.5/mt at IME ( Iran Mercantile Exchange) the
same as previous weeks. Long products are downward in domestic market, therefor
billet market participants expect billet price downward trend continues.
Long
Products
Long products experienced a depressed week as
some mills with traditional customers in the past are trying to increase sale
volume by advertising. Their main problem is lack of liquidity.
Debar diameter 14-25 mm dropped from Rials13.85
million/mt to Rials13.78 million/mt ex-work Ahwaz including VAT. Market
participants expect more Rials100,000/mt decline in coming days. The same
material in Esfahan market was Rials14.25/mt by end of the week down by
Rials100,000/mt.
I-beam price was up by Rials70,000/mt in
Esfahan market to Rials16.65 million/mt due to some participants speculative
policies. But long products market sentiment is generally week, so any
improvement would not be long lasting.
Flat
Products
Hot rolled Coil 2 mm thickness was down by
Rials200,000/mt to Rials15.3 million/mt on truck in Anzali including 9% VAT and
custom duty. It also dropped by Rials50,000/mt in Imam Khomeini port for
Chinese material to Rials14.95/mt on truck including 9% VAT and custom duty.
Ex-rate experienced a high record last week but HRC is still downward in Iran.
It has been a long time that importing HRC has been forbidden with exchange
room currency allocation but import level increased significantly during
current Iranian month ( 23 Aug- 22 Sep). As global prices are downward and
ex-rate improved in Iran, higher import level in coming future would be
unlikely.
HRC 2.5-6 mm thickness was stable
last week and 8-15 mm thickness was faced with Kavian Co competition. Kavian Co
was offering at Rials16.9million/mt and affected Mobarakeh Co offers. HRP
thickness 15 mm or higher experienced a sharp decline as Oxin co material
dropped from Rials17.65 million to Rials17.5 million/mt. Market was still
depressed with no buying interest.
CRC market was in lack of demand.
By middle of the week Korean and Chinese material was being offered at Southern
port of Imam Khomeini but CIS material in Anzali port was limited. By upward
trend in ex-rate, CRC market didn’t experienced heavy decline. Global markets
downward trend didn’t affect Iran market seriously.
CRC Price has declined by USD30/mt
in Iran import market during current month, from USD450/mt cfr
Northern/southern ports to USD420/mt equal to 7% decrease. Higher ex-rate has
covered lower import offers in USD, so CRC market has not fluctuated
significantly in Iran.
HDG market was almost stable with
some sizes decreasing by Rials200,000/mt.
Ex-rate:
In Exchange Room: Rials29,955/1USD
In free market: Rials33,880/1USD
Iran Steel Service Center