Billet
Billet price was almost stable during last week in Iran. Billet
size 150 mm from domestic leader Khouzestan Steel Co started the week at
Rials10.8 million /mt ex-work including 9% VAT and
finished the week at Rials10.7 million/mt ex-work
including 9% VAT, still with no buyer. Some private mills’ billet
declined by Rials200,000/mt and size 120 mm was offered at Rials9.7-10.2
million/mt ex-work including 9% VAT depending
on place of delivery.
Production level has declined and cost price of billet is near sale
price at the moment. Market has not responded to production cuts due to lack of
long products demand.
Within next 20 days, sanctions removal trend will be cleared. When
sanctioned are completely stopped, market leaders like Khouzestan Steel Co and
Arfaa co can easily export their billet. If market leaders do not increase
production capacity, other smaller mills would have a better situation in
domestic market.
Long products
Long products market was terribly quiet and unchanged during last
week. Debar diameter 14-25 mm was stable at respectively Rials12.95million/mt
and Rials14.15million/mt ex-works Ahwaz and Esfahan. I-beam size 18 mm started
rising by middle of the week and was up around Rials90,000/mt. Other sizes of
I-beam were downward. There were both domestic and imported I-beam available in
the market, therefore market leader Esfahan Steel Co couldn’t improve its
prices significantly.
Other long products were stable during last week, cold weather has
led to lower construction activity. Therefore market is in wait and see policy.
Market participants hope that government infrastructure budget help
long products market in coming months. Besides, after sanctions, big mills like
Esfahan Steel co can increase export level which will help other small mills to
have a better activity in domestic market.
Flat Products
HRC 2 mm thickness was upward during last
week to around Rials15.6 million/mt on truck in Anzali including 9% VAT
compared with Rials14.9-15 million/mt a week ago. By Wednesday, there was no
offer in Anzali port but same material was available in Imam Khomeini port at
Rials15-15.1 million/mt on truck including VAT. HRC thickness2.5-12 mm from
Mobarakeh Steel Co was in limited supply, therefore price was upward. Kavian co
also increased its HRP by Rials100,000/mt and Oxin Co price was stable. Some
sizes of Oxin co HRP were in limited supply. Current flat products market trend
is strange as prices have increase due to low supply despite lack of demand.
CRC market was in limited supply during
last week and this made prices up by Rials500,000-700,000/mt. At the moment
Chinese CRC has been offered at USD310/mt cfr , but would not be delivered
sooner than next 3 months. Kazakh material is also USD340/mt cfr with 40 days
delivery time. But also some last purchased cargoes are on the way to Iran.
Unstable market situation has led to low import level
of CRC currently as it declined from 82,000 mt to 71,000 mt and finally 52,000
mt during last 3 months. CRC prices started declining during 23 Sep- 22 Oct and
reached its peak by last month ( 23 Oct-21 Nov). By end of last Iranian month (
23 Oct-21 Nov) prices started rising which will help market balance. Cost price
for Kazakh CRC of USD340/mt cfr would be Rials15.5 million/mt on truck in
Anzali including 9% VAT. Therefore expecting more downward trend in the market
is logical.
HDG market was stable during last week with some sizes
in supply shortage.
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Ex-rate:
In Exchange Room :
Rials29,971/1USD
In free market : Rials34,570/1USD