Billet
Billet market was stable during last week in Iran. Size 150 mm from
domestic leader Khouzestan Steel Co was offered at Rials10-10.1 million/mt
ex-works including 9% VAT. Another offer was heard at Rials9.8 million/mt.
Arfaa steel co billet was Rials9.8-10 million/mt ex-works including VAT.
Private mills were offering billet size 120 mm at Rials9.4-9.8 million/mt.
Low supply level and lack of demand has made prices stable. Market
is quiet and everyone is moving cautiously, therefore transactions’ level is at
the bottom.
Long Products
Debar price was downward during last week in Iran especially for Esfahan
Steel Co products which reached the bottom. Debar dia 14-25 mm in Esfahan
market declined from Rials12.41million/mt to Rials11.95 million/mt ex-work
including VAT. Average price of I-beam sizes 14-18 mm dropped from
Rials14.81million/mt to Rials14.64million/mt. Angle and channel were also downward
by around Rials300,000/mt on Monday.
Producers
are faced with lack of margin as the gap between raw materials and finished
steel products is reducing day by day. Income level and sales volume both are
declining. If their sales volume was high despite lower prices, it was a little
helpful. But at the moment they have to reduce production. It’s unlikely that
this situation change till Parliament Election in next month.
Flat
Products
HRC 2 mm
thickness was stable during last week at Rials12.65/mt on truck in Anzali port
including 9% VAT and custom duty and Rials12.4/mt at Imam Khomeini port.
Transactions level was also limited. As demand level is low, Iranian producers
can satisfy domestic needs at the moment. Mobarakeh Steel Co didn’t change its
prices and HRC thickness 2.5-6 mm dropped by just Rials100,000/mt in retail
market. Domestic prices should drop more. If not, imported materials at
USD280/mt cfr Iranian port can be replaced as a competitive price.
HRP
market experienced serious downward trend as by Tuesday Oxin co product dropped
by Rials500,000/mt compared with a week ago. For HRP thickness higher than 15
mm, traders declined prices to increase sales volume. Therefore, prices reached
Rials14million/mt or lower. But Oxin co stopped offering by middle of the week,
this helped prices improve by Rials300,000/mt. If Oxin co increases supply
level prices will decline again.
CRC
market was stable during last week, rumors about higher custom duty changed
market trend. Supply level was limited, though traders tried increasing prices,
which was not accepted by market. CRC market trend will be clear within this
week.
HDG
market was also downward during last week and declined by up to
Rials200,000/mt.
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Ex-rate:
In Exchange Room :30,189 Rials /1USD
In free market : 36,470 Rials /1USD