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Iran Steel market Trend in Week 4th , 2016

Billet

Domestic billet size 150 mm from Khouzestan Steel co dropped by Rials100,000/mt to Rials9.9 million/mt ex-works including 9% VAT during last week. An offer at Rials9.8 million/mt also was heard in the market. Long products market is depressed, therefore billet demand is low. Price fluctuation was not significant during last weeks.

Buyers are bidding low and sellers insist on their offer prices. Billet size 150 mm from domestic private sectors was around Rials9.9-10.2 million/mt ex-works including VAT and size 120 mm was around 9.5-9.7 million/mt.

Long products market is quiet, though; any significant change in billet market seems unlikely.

 

Long Products

Long products market was downward as I-beam price dropped every day. Debar size 14-32 mm from Esfahan Steel Co dropped from Rials11.75million/mt to Rials11.5 million/mt ex-works including 9% VAT. Downward trend continued till Tuesday. After that Esfahan Steel co debar delivery time changed and made prices up by Rials100,00-200,000/mt  depending on size. But price of other producers was unchanged.

Angle and channel price dropped by Rials200,000/mt and by middle of the week their market became quiet. Most producers finished the week with losses as current last weeks. Therefore limited supply level is increasing for many sizes of different long products.

 

Flat Products

By beginning of last week, imported HRC 2 mm thickness was priced at Rials12.7 million/mt on truck in Anzali port including 9% VAT and custom duties for CIS origin product and Rials12.4million/mt on truck in Imam Khomeini port for Chinese material. HRC sellers have agreed with delayed payment of 10 days after delivery despite cash payment which has affected market quiet sentiment more. As import prices dropped by USD30-40/mt, import level increased from 57,132 mt to 119,791 mt during last Iranian month ( 22 Dec-20 Jan). Market players believe this is the main reason of downward prices. Mobarakeh Steel co tried controlling market with low supply level of thickness 3-10 mm, therefore its price was unchanged.

Low supply level of HRP from Kavian co and Oxin co made its price improve by Rials200,000/mt to Rials13.8 million/mt for thickness more than 20 mm.

CRC market was in limited supply, but demand level was also low. Sellers were resisting against decreasing prices and were offering at Rials16.5-16.8 million/mt on truck in Iranian ports including 9% VAT and custom duties but by Tuesday prices dropped by Rials200,000/mt.

HDG market was also quiet with prices drop by Rials200,000/mt during last week.

 

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Ex-rate:
In Exchange Room :30,186 Rials /1USD       
In free market    : 36,290 Rials /1USD

Jan 31, 2016 08:18
Number of visit : 1,070

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