Billet
Billet price in Iran market had downward trend, price of size 150mm quality 5SP was USD$409 including custom duty and 3% VAT. Most of the mills reduced their production of rebar and section and some mills already stopped. Converting rate reduced for USD$200 and reached to USD$50 per ton. During passed 7 months, more than 6m tons of steel products imported to Iran which 2.7m tons was billet. Most of imported billet is now stocked in the warehouse; profit rate of section production is too narrow for mills but risk of price reduction has gone up dangerously since all producers and buyers facing cash follow. Billet in Iran is cheapest in the world. Custom duty and VAT is totally about USD$42/ton. If we deduct it from sales price of USD$409 CFR, price will be USD$367 CFR North Iranian ports. No billet in the world is so cheap.
Section
Section passed terrible dull market, retail price of rebar dropped to USD$535/ton. IPE average price reached to USD$610/ton including duty and VAT.
UNP and equal angle was stable due shortage in supply. Most of traders are worry about Isfahan steel mill reduce his sales price in next week. Most of traders feel that rebar price is now in its bottom rate, and it should not drop any more, but they are afraid since there is only 73 working days, remain till end of Iranian day, so mills must cover their sales volume till end of this year within next 40 days. So, mills will reduce price and inject cargo to the market during holiday. Any trader who buys steel within next 40 days, he will receive it after 60 days, but he can sell it during 6 months due holidays. So, few people will risk to purchase steel.
Plate
Market for flat products was stagnant. HRC 2mm which has biggest demand had sharp decrease and reached to USD$560 including custom duty and VAT. Price is lowering down and trade volume is limit. Some traders believe that in next week price will come down for about %10 for this item, since cheap orders of Chinese products are on the way to Iran. HRC 3mm and up had stable price but with few transactions. CRC also has weak demand but supply is not too much due Mobarake steel Complex (MSC) who is main Iranian supplier has narrow delivery. In spite of last offer of this mill in Tehran Merchantile exchange has dropped about USD$30/ton for HRC and CRC orders was less than 2,000 tons. Foreigner suppliers also reducing their offers of those products and market is silence, future months are forecast to be stagnant. So, most of traders and end users are waiting. They are sure that prices will come down due very poor demand. Market analyst expect Mobarake as main player, reduce his prices up to 10 percent, otherwise, he cannot stay in Iran market any more for next 3 months. Wait and watch policy of buyer will cause prices to lower down.
Galvanized coil had stable market, it is due supply is not too much. It seems that 2008 crises now playing in Iran market. Holidays in future markets discourage buyers besides that there is no clear view for next year situation.
Iran Steel Service Center