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Iran Steel market Trend in Week 9th , 2016

Billet

Billet market experienced some fluctuations during last week in Iran. Domestic billet size 150 mm from Khouzestan Steel co started the week at Rials10.4 million/mt ex-work including 9% VAT. It was down by Rials200,000/mt on Monday as some traders were in the market for selling their inventories. Long products were also downward and influenced billet market. By Tuesday some sellers left the market and made prices improve again to Rials10.4 million/mt.

These fluctuations were seen for other mills’ billet products too. Billet size 125 mm was not offered in the market as many mills were sold out.

 

Long Products

Long products were up last Saturday, but started declining by Sunday onward and debar diameter 14-25 mm finished the week Rials600,000/mt lower at Rials12.4 million/mt ex-works including 9%VAT. I-beam size 14-18 mm experienced some fluctuations and finished the week unchanged at Rials14.73million/mt ex-work including 9% VAT. Angle and channel were also downward from Sunday onward.

Long products had been rising during previous weeks, but Esfahan Steel Co higher supply level last week at IME ( Iran Mercantile Exchange) made market quiet. Esfahan Steel Co offered 100,000 mt of its debar, I-beam and angle at IME, which was sold at base price of Rials11.95million/mt ex-work excluding VAT. By Sunday the mill sold 20,000 of its debar at base price of Rials10.8 million/mt excluding VAT, which was Rials300,000/mt lower than initial offer. This made debar price decrease in retail market too. Some traders which had debar inventory purchased at Rials11 million/mt base price during previous weeks, started offering in the market worried about more losses. This made market quiet as demand level has not changed.

Some authorities talked about high possibility of rising import taxes in near future. This news didn’t let market feeling more pressure.

I-beam price had some increases by end of the week due to foreign competition but debar and angle were downward. Higher import tariffs will influence channel, I-beam and angle sizes higher than 10 mm. 

 

Flat Products

With increasing possibility of rising import tariffs in near future, HRC 2 mm thickness experienced some upward trend during last week in Iran. By last Saturday its price jumped by Rials1million/mt to Rials13.8 million/mt on truck in Anzali port including 9% VAT and Rials13.3 million/mt on truck in Imam Khomeini port including VAT. By Monday HRC price declined by Rials500,000/mt at Anzali port and Rials300,000/mt at Imam Khomeini port. In domestic market HRC 2.5-6 mm thickness improved by Rials200,000/mt, but sizes 8-15 were almost unchanged despite limited supply level.

HRP market was quiet. Suppliers were interested in rising prices but demand level is low at the moment. Some market participants anticipate upward trend as import tariffs will rise, but some others believe prices will decline as supply level may increase.

CRC market increased by Rials500,000/mt by last Saturday but prices became downward again and finished the week at almost the same as a week ago. Demand level is low at the year end and market is quiet. HDG market was also the same as CRC market.  

Ex-rate:
In Exchange Room : 30,200 Rials /1USD       

In free market    : 34,464Rials /1USD

Mar 6, 2016 09:48
Number of visit : 1,217

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