Billet
Billet price was slightly
downward despite limited supply level. Billet size 150 mm was offered at
Rials10.2-10.3 million/mt ex-work including 9% VAT, with no transaction
finalized. Size 120 mm from small mills was offered at Rials9.5-9.7 million/mt.
generally, demand and supply level both were limited.
Billet price is at the
bottom, therefore producers have declined production level to avoid any further
decline in price. A quarter ago there were many different sizes available in
the market at high tonnage, now market availability is limited. When export market
improves, domestic supply would be more limited.
Long products
Debar price experienced
around Rials200,000/mt decrease during last week in Iran domestic market.
Average price of debar diameter 14-32 mm from Esfahan Steel co declined by
Rials50,000/mt to Rials13.2 million/mt ex-work including 9% VAT. Khorasan Steel
Co product also declined by Rials100,000/mt to Rials12.2 million/mt ex-work
including 9% VAT.
Price of I-beam size
14,16,18 mm dropped from Rials16.313 million/mt to Rials16.280 million /mt.
Angle and channel were down by Rials300,000/mt. Debar price is near bottom, but
angle and channel have more space for declining. Therefore, they will continue
decreasing.
Profit margin is very
limited for debar producers. Besides, demand level is low, so we can’t expect
any improvement in debar market in near future.
Flat Products
HRC 2 mm thickness
was downward during last week in Iran, by middle of the week prices improved.
Its price improved by Rials100,000/mt to Rials13.6 million/mt on truck in
Anzali including 9% VAT. If imported by exchange room rate, this price is profitable.
There are some rumors about USD30/mt cut for Kazakh origin HRC in near future.
But generally global prices are at the bottom. HRC 2 mm thickness import level
increased by 20,000 during last Iranian month (22 No-21 Dec) and importers are
not interested any more. Prices may be stable in coming weeks.
HRC 2.5-6 mm
thickness was stable as Mobarakeh Steel Co stopped offering. Supply level is
limited but demand is also scarce and prices are not improving. Besides,
importers are worried about higher ex-rate and can’t be active in import market
seriously.
HRP market was
depressed with Oxin co price dropped by Rials300,000/mt and is not expected to
improve as Chinese cargoes with 15% price competitiveness are coming to the
market. Besides, buyers are not satisfied with Oxin co delivery terms.
CRC price was down
by Rials300,000/mt. CRC price in global market is stable at the moment but may
drop by USD20/mt in coming weeks. CRC import level to Iran increased by 10,000
mt during last Iranian month (22 No-21 Dec) to around 36,000 mt. Higher import
level made prices downward. Market participants expect CRC price be stable in
coming week.
HDG market stayed
quiet with prices down by Rials300,000/mt.
Ex-rate:
In Exchange Room : Rials
30,119/1USD
In free market :
Rials 36,600/1USD