Iran
Steel Market Trend in Week 50th
, 2015
Billet
Billet
market was stable and quiet during last week in Iran. Due to the long weekend,
buyers were not active and producers were not offering much. Therefore, market
was unchanged. Billet size 150 mm base price was fixed at Rials10.4 million/mt
at IME. Kazakh origin billet was offered at limited tonnage at USD220/mt fob
Aktau equal to USD230/mt cfr Anzali port. But minimum price of CIS origin billet was USD250/mt fob Black
Sea. If the price of USD230/mt cfr
Anzali port is correct, its cost price would be Rials10.2 million/mt after
custom duty and VAT, which would be an affordable price compared with current
market trend. Besides, it depends on long products price trend too.
Long products
Debar
price was downward by beginning of last week. As Esfahan steel co debar dropped
significantly by Rials500,000/mt and other mills followed this trend. Debar
diameter 14-25 mm from Esfahan Steel CO declined from Rials13.853million/mt to
Rials13.16 million/mt ex-work including VAT. Khorasan Steel co debar dropped by
Rials100,000/mt to Rials12.4 million/mt.
I-beam
price also dropped from Rials16.50 million/mt to Rials16.35million/mt. Angle
price decreased by Rials 300,000/mt and channel price was unchanged.
Market
players expect more downward trend in long products as demand level is not
improving but producers will increase delivering more cargoes which will
pressure long products prices more.
Flat products
Flat
products were almost unchanged during last week and just HRC 2 mm thickness
declined which was expected. HRC 2 mm thickness was Rials 15.7 million/mt on
truck in Anzali and it was Rials14.7 million/mt on truck in Imam Khomeini port from Chinese suppliers
at the beginning of the week. Prices
were respectively Rials14.5 million/mt and Rials14.2 million/mt in Anzali and
Imam Khomeini port at the end of the week. This downward trend will continue in
coming weeks. At the moment cold weather at CIS ports has affected shipping
schedules to Iran, when this problems solve, around 60,000 HRC will arrived
Iranian ports at purchased price of USD310/mt with ex-rate of Rials30,000/USD
at exchange room. Therefore, there is more space for declines.
HRC 2.5
– 6 mm thickness was in limited supply. Buying from market leader Mobarakeh
Steel co is not affordable and the supplier is not eager to decline prices,
though supply level has declined. Demand level is scarce and prices have not
changed.
HRP
market was also stable and Oxin co products under 40 mm thickness were limited
in the market. Kavian co supply level was also limited and imported cargos were
not much available at the ports, this made prices stable. It may improve in
coming days but won’t last long.
CRC
market was stable and didn’t change significantly, when import cargoes arrive,
prices will start declining. HDG market was also unchanged.
Ex-rate:
In Exchange Room :
Rials30,103/1USD
In free market :
Rials33,950/1USD