Billet
Billet market was stable during last week in Iran. Many mills had
stopped production from a week ago as they were expecting this market silence
due to week end religious holiday. Besides, Long products market was also
quiet. Supply and demand level both stopped, therefore billet price was
unchanged.
Imported billet size 150 mm was offered at Rials1.06 million/mt on
truck in Anzali including 9% VAT, but no buying interest. Domestic leaders were
not offering billet size 150 mm. But price of size 125 mm increased marginally
due to lack of supply and improved from Rials980,000 /mt to 1.02 million/mt
ex-work including VAT.
Long Products
Long products market was not active and prices didn’t change. Market
stoppage due to religious holiday will continue this week too as coming
Thursday and next Saturday market will be again closed for mourning holidays.
Average debar price size 14-25 mm in Esfahan market was changed from Rials14
million/mt to Rials13.97 million/mt. I-beam size 14,16,18 mm also declined from
Rials16.83 million/mt to Rials14.58 million/mt ex-work including 9% VAT. Angle
and channel were also cheaper by Rials200,000/mt during last week.
Any significant change in market trend seems unlikely in coming days as
billet price is unchanged. For angle and channel downward trend will continue
due to the gap they have with billet price.
Flat Products
HRC 2 mm thickness was down by Rials200,000/mt during last week in
Anzali port to Rials15.7 million/mt on truck including 9% VAT. But the material
was unchanged at Imam Khomeini port at around Rials14.9 million/mt on truck
including VAT. For sizes 2.5-6 mm especially size 3 mm supply shortage
continued which made its price up by Rials300,000/mt but won’t continue rising
as market is not active. If market leader Mobarakeh Steel Co continues its
policy of offering at fixed prices, Chinese material will win the competition.
Chinese HRC thickness 2.3-3 mm is USD290/mt cfr Imam Khomeini port. When using
free market ex-rate, its cost price would be less than Rials13 million/mt
including custom duty and VAT. But the same material base price at IME after
VAT would be more than Rials15.5 million/mt. This gap will increase import
price competitiveness in Iran market.
In plate market
prices were up by Rials200,000/mt due to limited supply by market leaders Oxin
co and Kavian co.
CRC price was stable
but market activity was also scarce. Price of thickness 1.25 and 1.5 mm in
import market improved due to limited supply level. HDG market was quiet like
previous weeks.
Ex-rate:
In Exchange Room :
Rials30,093/1USD
In free market :
Rials36,100/1USD