Billet
Billet
market was marginally downward during last week in Iran. Billet size 150 mm in
domestic market was being offered by Khouzestan Steel Co at Rials11.2
million/mt ex-work including 9% VAT, down from Rials11.3-11.4 million/mt. For
billet size 125 mm, downward trend was more to reach Rials11 million/mt and
finally ended the week at Rials10.8 million/mt ex-work including VAT.
In
import market, Kazakhstan origin billet was Rials11.6-11.85 million/mt on truck
in Anzali port, with no serious buyer in the market.
Market
is depressed due to:
1-
Beginning of religious Mourning days of Muharram, which traditionally lead to
sadness in the market.
2- Lack
of demand which will be more serious in the future as cold weather is coming.
Long products
Long products were
stable with no serious change. Debar price of Khorasan Steel Co increased by
Rials200,000/mt, but it was just a price correction as the supplier had reduced
it before, unreasonably.
This increase in
price didn’t change market sentiment as it was not matched with demand level. It
just made it quieter. Market participants expect reduction in prices as demand
in low.
I-beam price was
generally stable, just price of size 18 mm increased due to market leader
pricing policy. Esfahan Steel Co was successful to sell 50,000 mt of I-beam
size 18 after increasing its price. But everybody expect lower price as demand
in scarce.
Flat products
HRC 2 mm thickness
was Rials14.7 million/mt on truck in Anzali including 9% VAT. After huge import
level during last Iranian month (23 Aug-22 Sep) and lower domestic prices,
import transactions have reduced. But high inventory of imported cargoes won’t
let market improve in near future.
In current Iranian
month( 23 Sep onward) around 58,000 mt of HRC has been imported. HRC price
won’t be lower than Rials14.5 million/mt in coming future as the downward trend
in global markets has been stopped.
HRC size 2.5-6 mm
from Mobarakeh Steel co was down by Rials300,000/mt despite limited supply
level. Demand is low and won’t let prices improve. HRP market was in a
competitive situation between import market and domestic leaders, so prices
have reached the bottom. Some market participants expect more Rials500,000/mt
reduction in prices.
CRC market was still
quiet with prices down by Rials300,000/mt but demand level is still downward.
Main CRC buyer is auto market which is itself a CRC seller at the moment due to
market sadness.
In HDG market
downward trend also continued with prices down by Rials300,000/mt.
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Ex-rate:
In Exchange Room: Rials29,952/1USD
In free market: Rials34,510/1USD