Billet
Billet market
was unchanged during last week in Iran due to two main reasons:
1- Scrap supply
level have declined significantly in Iran. Lower re buildings due to economic
sadness, has lowered scrap production. Besides, lower industrial productions
have also affected scrap supply level.
2- Billet price
has reached the bottom, and there is no more space for lower prices. Therefore,
billet production has declined. Limited billet supply level has been obvious
during last 2 weeks.
Billet size 150
mm was priced at Rials10.15-10.40 million/mt ex-work including 9% VAT depending
on place of delivery, but offered at very low level. Khouzestan Steel co billet
was priced at Rials10.3 million/mt ex-work including 9% VAT. Billet size 120 mm
was offered at limited tonnage at Rials9.6-10 million/mt ex-work including 9%
VAT.
Based on last
agreements, HBI should be priced half of Khouzestan Steel Co billet sale price
at IME. If billet price at IME declines, HBI price should decline, which will
make iron ore concentrate price down too. But price of HBI and concentrate won’t decline
easily due to resistance of state owned producers.
Long
Products
Long products
prices were down by a limited margin during last week. As billet price downward
trend has stopped and production level is low, long products market is facing
with minimum competition. Debar price of Khorasan Steel co dropped by
Rials100,000/mt Rials12 million/mt including 9% VAT in spot market. Esfahan
Steel Co products prices were mostly stable. Just angle and channel price
decreased by up to Rials400,000/mt for some sizes. This decline was not unlikely
but angle and channel price is also reaching bottom.
Demand is low
and production level is declining. This situation will not affect state owned
mills, but private mills are seriously worried about their future.
Flat
Products
HRC 2 mm thickness is near the bottom. Its price at Anzali port was
Rials13.2 million/mt on truck including 9% VAT and at Imam Khomeini port it was
Rials12.5million/mt for high tonnage parcels. New Year Holidays in supplier
countries made prices stable in import market and there was no interest in
buying. Lack of demand in pipe and
profile market, has affected HRC market. 2.5-6 mm thickness HRC was in limited
supply. Mobarakeh Steel co has not changed its price at IME and in spot market
prices have reached bottom. Though, there is no interest in investment in this
market. HRP price was down by Rials400,000-500,000/mt. Market was quiet and
lower prices can not compensate lack of demand.
CRC price dropped by Rials500,000/mt by start of the week but lower
supply level made it up by Rials300,000/mt
at middle of the week. Import market has been quiet too. HDG market was
downward and depressed.
Ex-rate:
In Exchange Room : Rials
30,142/1USD
In free market :
Rials 36,700/1USD