Billet
Billet retail market was downward during week 46th
in Iran. Billet size 150 mm from market leader Khouzestan Steel co dropped by
Rials200,000/mt to Rials10.6 million/mt ex-work including 9% VAT in retail
market. The same material from private sector mills declined at least
Rials100,000/mt to Rials10.5 million/mt ex-work including 9% VAT.
Domestic billet size 120 mm decreased from
Rials10.5/mt to Rials9.7million /mt ex-work including 9% VAT.
Foreign
billet offers are almost unchanged but importing billet is not economically
affordable any more as ex-rate has improved.
Minimum
import offer is USD270/mt cfr Northern Ports. AS 1 USD is around Rials35,000/mt
in free market, finished cost price for imported billet after custom duty and
VAT would be Rials11.3 million/mt on truck in Anzali. But domestic prices are
cheaper and domestic producers have competitive strength over payment term
against import market. Iranian buyers can purchase domestic billet with delayed
payment. All these factors have led to low import level this year, which has
been around 48,800 mt year to date.
Long Products
Long products were almost stable during last week
in Iran. Debar and I-beam price were unchanged as market leader Esfahan Steel
Co policy didn’t let prices change. I-beam size 8-24 mm just declined in Tehran
market. Besides, angle and channel had a downward week and experienced daily
declines.
Debar and I-beam had a stable week as;
1- Many mills have reduced production level.
Producers were not offering all sizes of debar in the market. Besides Esfahan
Steel co was controlling the market with its limited supply level.
2- The other reason was unchanged sale price of
billet at IME ( Iran Mercantile Exchange) by market leader Khouzestan Steel Co.
Market participants have been waiting from two weeks ago for lower billet price
at IME. It seems that exporting billet has helped Khouzestan steel co in
resisting against lower prices. The mill has not declined production level for supporting
export demand, therefore lower price would be unlikely in near future.
Other long products were downward as billet size
125 mm had experienced declines. This made angle and channel decline on a daily
basis. At this situation, every billet producer using scrap as raw material has
to decline production level and the mills which use DRI as raw material will
stay in the market due to its advantages over scrap.
Flat Products
HRC 2 mm thickness had a stable week at around
Rials14.9 million/mt on truck in Anzali including 9% VAT. Its import level
declined by 10,00 mt during last Iranian month ( 23 Sep-22 Oct) to 71,500 mt.
Cold weather in Russia has made their export level to Iran limited and
Kazakhstan suppliers are offering at USD300-310/mt cfr Anzali port. During last
20 days of current Iranian month ( 23 Oct -11 Nov ) ex-rate in free market has
increased from Rials33,500/1 USD to Rials35,000/1 USD. Besides imported HRC 2
mm thickness declined from USD350/mt to USD310/mt cfr Iranian Northern ports.
It means ex-rate was up by 5% against 12% decline in offer prices. Therefore
price downward trend will continue.
Chinese material offer price was stable but cost
price of imported HRC in Imam Khomeini Port in South of Iran increased from
Rials14.2million/mt to Rials14.35 million/mt on truck including 9% VAT and
custom duty.
For thickness 2.5-6 mm, limited supply level made
prices upward during last week. But sizes 6-15 mm was down by end of the week.
HRP thickness 12-40 mm from domestic leader Kavian and Oxin steel Co was
downward daily. Demand is limited but import completion has increased. Market
participants mostly expect downward trend continue as demand is scarce and some
religious holidays in coming month will decrease market activity more.
CRC market was faced with producer’s resistance
against lower prices due to negative margins. But bid prices show buyers’
expectation for more declines. Limited supply level helped producers and prices
were stable. Some mills also were looking for higher prices by end of the week
but market potentials can’t afford it. Besides, some cheap cargoes are on their
way to Iran market and will make situation worse.
HDG market was also stable and silent.
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Ex-rate:
In Exchange Room :
Rials29,963/1USD
In free market : Rials35,700/1USD