Billet
Billet market passed a
quiet week. Billet size 150 from domestic leader Khouzestan Steel co was priced
at Rials10.5 million/mt including VAT and finished the week at Rials10.4
million/mt. Size 120 and 125 mm from domestic producers was also at
Rials9.5-10.2 million/mt ex-works including 9% VAT. Long products market is
quiet, therefore billet demand is limited.
Four months ago(23
Jul-22 Aug ), billet retail market was Rials12-12.5 million/mt including VAT.
Sales price at IME was Rials12.02 excluding VAT by first half of that month and
Rials11.5 million/mt in second half of that month. Sale volume was 166,800 mt.
But by last Iranian month (23 Oct – 21 Nov) 163,100 mt of billet was sold at
IME at base price of Rials11.5million/mt. During last 4 months, billet price
has declined by 14% in retail market but almost stable at IME. Transaction
level at IME declined from 166,800 mt to 34,700 and then improved to 78,400 and
finally 163,100 during last month. Price has been stable at IME, but based on
supply level price would be downward in retail market.
At the moment there is around
Rials2million/mt gap between billet and debar, so debar price has space for
more decline but not more than Rials1 million/mt. Debar demand level is limited
and downward trend in prices is likely in coming 6 months. This may lead to
lower billet price too. Global billet price has dropped by USD10/mt and has
reached bottom, therefore billet price at IME won't decline significantly if
any.
Long Products
Long products were downward slightly during
last week. Debar piece was down by Rials200,000/mt and I-beam by
Rials100,000/mt. Angle and channel also dropped by Rials200,000-400,000/mt.
INSIG co debar dropped by Rials450,000/mt to Rials12.5 million/mt. Khorasan
Steel Co debar also declined by Rials200,000/mt.
Different mills are offering debar in
retail market in 2,000 mt parcels and transactions level at IME has declined
recently.
Flat Products
HRC 2 mm thickness declined by Rials200,000/mt
to Rials15.6 million/mt on truck in Anzali including 9% VAT. But as currency
rate was upward, HRC price also increased to Rials15.9 million/mt by end of the
week. Some import parcels are on the way, but limited ship availability has
increased shipment time to 20 days. Besides, rumors about higher import custom
duty for the material has helped upward trend.
For HRC with thickness under 6 mm, market was
quiet, but some sizes like 3 mm thickness were in limited supply. Thickness 8
mm was also scarce.
For HRP thickness 20 mm or higher, price was up
by Rials200,000/mt due to market leader Oxin steel Co limited supply policy.
Besides, demand level is low.
In CRC market, supply shortage continued. But
some cargoes are on the way to northern and southern ports. Therefore sellers
are trying to use this situation and sell available material at best price.
HDG market was quiet and its price was
unchanged.
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Ex-rate:
In Exchange Room : Rials30,071/1USD
In free market : Rials36,390/1USD