Billet
Billet market was
downward marginally during last week in Iran. Khouzestan Steel Co billet size
150 mm started the week at Rials11.4-.11.5 million /mt ex-work including 9%
VAT. By middle of the week market participants were expecting Rials500,000/mt
decline , then price reached Rials11.3million/mt. By Wednesday, the market
leader sold 65,000 mt of size 150 mm at base price of Rials11.5 million/mt at
IME which was a matching contract.
Market participants
expect downward trend continue in domestic billet market as global prices are
downward and CIS origin billet is around USD295/mt. China market was close due to National
Holidays, therefore in coming days China market trend will influence Iran
billet market too. Based on demand level and also long products market trend,
billet price would be downward.
Long products
Long products market
started declining from Last Sunday onward. Debar price dropped to under Rials13
million/mt for the first time during last 3 years. Khorasan Steel Co debar was
priced Rials12.9 million/mt ex-work including 9% VAT. By Tuesday, distributers
of Khorasan Steel Co debar decided resisting against downward trend and don’t
sell lower than Rials13.05 million/mt. This policy made market stable. Khorasan
Steel Co produce billet itself, therefore lower cost price allow him reduce
debar base price and increase the gap from other mills prices. Debar bottom
price would be Rials12 million/mt , but at this price many mills will be forced
to close.
I-beam price was
stable during last week as Esfahan Steel co supply level was limited. Size 18
mm started rising by middle of the week, but demand is scarce and upward trend
won’t last long.
Esfahan Steel co
reduced debar supply level by last Wednesday, but it helped increased
Khouzestan Steel Co billet sales, despite better debar price.
Other long products
were downward unless imported UNPs. By middle of the week Esfahan steel co
decreased UNP supply level and it made its price improve. Demand is low and
price will be stable in coming days.
Flat products
HRC 2 mm thickness
was downward and reached Rials14.9 million/mt on truck in Anzali including 9%
VAT. High import level during last 2 months has made HRC price downward. CIS
origin 2 mm HRC was stable at USD340/mt cfr Northern ports and Chinese product
was not offered due to Holidays there, but it was strictly downward in Iran
market. From late September till now around 300,000 mt HRC has been imported,
but its monthly import level had been around 65,000 mt before.
For size 2.5-15 mm
thickness from Mobarakeh Steel Co, domestic price declined by Rials200,000/mt,
especially for sizes 8-15 mm which was competing with other domestic producers
and also import market.
HRP thickness 15 mm
or higher dropped by Rials200,000/mt. Market participants expect this downward
trend continue.
CRC market was down
by Rials500,000/mt. Dumping import cargoes in both Southern and Northern ports
are increasing the pressure on domestic market. Market participants expect
government authorities support them against high import level like many other
countries.
CRC base price has
reached Rials18-18.5 million/mt and is expected to be lower than Rials18
million/mt in coming month. Domestic mills are feeling this pressure and should
ask government to support them.
HDG market was also
downward up to Rials500,000/mt. Its demand level is also limited.
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Ex-rate:
In Exchange Room:
Rials29,955/1USD
In free market: Rials34,750/1USD