Billet
Billet market experienced a very quiet week in Iran. Prices were
downward despite very limited supply level. Many private mills production level
have declined.
Scrap price declined by Rials200,000/mt and DRI by Rials100,000/mt.
Billet size 150 mm from Arfaa steel co was Rials10.1 million/mt ex-work
including 9% VAT. Khouzestan Steel Co billet was unchanged at Rials10.5/mt at
IME (Iran Mercantile Exchange) but with better payment term. Its payment term
was 2 months longer compared with last sales which was 6 months.
Debar- billet price difference in price has bottomed. With long
products market depression continue, more billet producers will cut production
or close lines.
There is no demand and lowering prices more than this won’t help
market improve.
Long
products
Debar
price continued downward trend during first week of January in Iran. Esfahan
Steel Co debar diameter 14-25 mm declined from Rials13.1 million/mt to
Rials12.96 million/mt ex-works including 9% VAT. I-beam price reduced sharply
due to lower sale price of Esfahan Steel Co at IME. I-beam size 14,16,18 mm
dropped from Rials 16.28 million/mt to Rials14.933/mt including VAT by end of
the week.
Due to
lower billet price and depression in long products market, angle and channel
were also down by Rials500,000/mt. Market participants expect long products
market continue downward trend in near future.
Flat Products
HRC 2 mm thickness was priced at Rials13
million/mt on truck in Anzali and Rials12.5 million/mt on truck in Imam
Khomeini port by beginning of last week. By Sunday it was announced that custom
office has increased import tariff rate for alloyed flat products by 6%.
Therefore, HRC 2 mm thickness price
increased by Sunday. By Monday, CIS sellers declined their offers by USD15/mt
to USD280/mt cfr Anzali port, to satisfy import tax increase and make use of
Chinese absence in the market for New Year Holidays. Besides, domestic HRC 2 mm
thickness was priced at Rials12 million/mt ex-works including 9% VAT by end of
the week. Finally imported HRC 2 mm thickness was down to Rials12.9 million/mt
on truck in Anzali including VAT and custom tariff. For thickness 2.5-6 mm, market experienced
around Rials200,000/mt decline and 8-15 mm HRP was down by up to
Rials300,000/mt. Oxin and Kavian co products were down by Rials600,000/mt due
to competitive situation in the market.
CRC price dropped by Rials500,000/mt
despite being at its traditional high consumption season ( between 22 Dec – 19
Feb). CRC market is strictly quiet. Besides, Kazakh CRC has declined by
USD20/mt to USD330/mt cfr Anzali port, but there is no serious demand for
importing CRC due to market depression. Market will face limited supply level
in coming months.
HDG market was also quiet like CRC, and
dropped by up to Rials500,000/mt.
Ex-rate:
In Exchange Room : Rials
30,157/1USD
In free market :
Rials 37,150/1USD