Billet
Billet
price dropped slightly during last week in Iran. The reason behind this
stability was low supply level from Khouzestan Steel Co and Arfaa Steel Co.
Other producers were offering billet with Rials100,000-200,000/mt discount.
Domestic
billet size 150 mm was being offered at Rials11.5-11.6 million/mt ex-works
including VAT, with a mill offering at Rials11.4 million/mt. Generally there
was no interest in buying.
Market
participants expect possible decline in billet price not more than
Rials500,000/mt as domestic billet price is near bottom in Iran. Billet price
is almost the same as 3 years ago, but all production costs have increased.
Therefore the only way for the mills would be production cut to survive in this
situation especially for private sector mills. Production cut will balance
supply – demand but meanwhile producers will be in lack of liquidity and can’t
pay their bank loans.
Long products
Long products
were downward during last week in Iran by up to Rials200,000/mt. Average price
of debar diameter14-25 mm declined by Rials500,000/nt in Ahwaz market to
Rials13.75 million/mt. The same product in Esfahan market was down by
Rials150,000/mt to Rials14.1 million/mt. Price of I-beam size 14-18 mm was
stable in Esfahan market at Rials16.65million/mt ex-works including VAT.
Angle
and channel generally had a stable market. Some sizes of channel were up by
Rials200,000/mt, market was depressed
and transactions’ level was limited. Traditionally, during last week of
summer this upset trend is usual.
Investors
mostly expect no especial improvement in Iran long products market. Long
products deals were mostly in I-beam section due to especial policies of market
leader Esfahan Steel co. The mill sold 76,000 mt of I-beam and debar and also
50,000 mt of I-beam size 14 and 16 mm during last week at IME( Iran Mercantile Exchange) but these
sales are not showing general trend of the market.
Flat products
Imported HRC 2 mm thickness was stable during last week in
Iran at Rials15.2 million/mt on truck in Anzali including 9% VAT, but Chinese
product dropped by Rials100,000/mt to Rials14.85 million/mt on truck in Imam
Khomeini port including VAT. It is a buyer’s market as supply level is high.
During last Iranian month, import level increased by 159,000 mt to 189,000 mt.
Average monthly import level of HRC 2 mm
thickness during first 5 months of Iranian calendar ( started at 21 Mar 15) has
been 55,500 mt, but it more than tripled by last month. Import prices are
downward and Iranian buyers are resisting from finalizing deals. They believe
prices will continue downward. Chines 2 mm HRC is USD320/mt cfr Imam Khomeini
port, USD30/mt lower than a month ago. Buyers expect Chinese product reach
USD280/mt cfr southern ports in coming future.
For sizes 2.5-6 mm
thickness, market leader Mobarakeh steel co didn’t change its price. Meanwhile
global prices are downward and the Iranian mill should follow this trend sooner
or later.
HRP market was volatile during the week as Oxin co HRP
thickness more than 20 mm, improved by Rials100,000/mt to Rials17.45million/mt
ex-work including 9% VAT due to delay in delivery from mill. Kavian co HRP was
also in the same trend but generally market was weak.
CRC market was quiet. CRC monthly import level has declined
from 31,000 metric tones to 23,000 mt during last Iranian month ( 23 Aug-22
Sep) as import price has declined from USD420/mt to USD350/mt cfr Imam Khomeini
port during last month. Therefore, importers hold wait and see policy. In
domestic market prices also have declined by Rials300,000. Market future
sentiment is not clear. Import level may continue declining as currency
allocation from exchange room for this product has stopped. Besides,
consumption season of CRC has begun.
HDG market was depressed with prices down by up to
Rials300,000/mt.
Ex-rate:
In Exchange Room:
Rials29,955/1USD
In free market: Rials33,910/1USD
Iran Steel Service Center