Billet
Iranian billet market is still sleeping. Billet size 100 x 100mm sold at USD447.- including custom duty and VAT in Anzali. Billet size 125 x 125mm is offered at USD427.- and 150 x 150mm at USD412.- in Anzali, custom duty and VAT paid.
Very few transactions is heard since market for sections is dead. Some traders tried to increase billet price for USD2 – 5/ton, but unsuccessful. Since six months before, cost price for imported billet was more that retail price in market. Five months before imported quantity was at pick by nearly 499,000 tons but last month it decreased to 267,832 tons. Most traders expect imports to come down more. Offered prices for CIS billet size 150 x 150mm quality 5Sp is around USD440.- per ton CFR north Iranian ports.
Sections
Debar prices in Iran continued its downward trend. If Isfahan Steel Mill does not reduce its offered price, debar will stop on bottom. IPE prices reduced and it will continue in next week. IPE size 180mm which was offered at USD620.- per ton at the beginning of week and reached to USD600.- per ton by end of the week.
On Monday there were rumors that import of Angles and UNP will be prohibited. It made some good sentiment in market, but demand of these products is not so much. Also their import is not so much to affect the market.
Angle import during passed 8 months was 23,000mt and UNP 202,000mt. Iranian mills have excess capacity for both items and they can produce all sizes of this two. So, even if they would not import, it will not affect market. On the opposite side, import of IPE was over 580,000mt which it is not down by private sectors totally. Debar imports was only 5,600mt while five months before it had record of 96,000mt. Mills supply for rebar is too much and market demand is much lower than supply. While during this situation government intend to run eight new debar mills.
Today’s market sentiment is hopeless. Nobody wants to buy section and this situation will continue, unless construction activities start.
Flat products
Plate market is stable. Inventories are coming down but since end users demand is week, prices unchanged. Most of flat products offers to Iranian traders have gone up.
HRC 2.00mm, MMK product is offered at USD560-570 per ton CFR, HRP is USD540-550 per ton CFR and CRC 0.70 to 2.00mm is offered at USD610 per ton. GIC is USD730.- CFR north Iranian port. All CIS product and delivery is Jan/Feb.
Transaction volume for flat products is low and it is not expected to recover. Most traders believe that Mobarakeh will reduce its price but even if Mobarakeh keep its price level, market sentiments is not good as next four coming months are lull and semi holiday in Iran.
Iran Steel Service Center