Billet
During
first half of last week in Iran, billet market was downward. Domestic billet
size 120 mm dropped to Rials12.8 million/mt and size150 mm reached the bottom
of Rials13.5 million/mt ex-works including 9% VAT. Besides, billet production
of big suppliers such as Khouzetsan Steel co, Arfaa Co and Khorasan Steel Co
was not being offered in the market. By Monday, Khouzestan Steel Co appeared in
the IME with fixed base price of Rials14.5 million/mt ex-work excluding VAT and
made market sentiment improved. Market participants were not any more worried
about possible declines and market sentiment became positive.
By
Tuesday as price of long products improved, billet demand increased. Low supply
level helped prices as billet price reached Rials14.6-14.8 million/mt including
9%VAT but demand level was still limited.
Chinese
billet at USD400/mt would cost Rials18 million/mt including VAT and custom
duties for importers which have a significant gap with domestic prices.
Domestic billet producers have purchased their scrap needs previously and this has
made scrap price downward. Therefore, some market participants expect downward
trend for domestic billet. Meanwhile Khouzestan Steel Co as the market leader
would guide market with its price policy.
Market
is faced with supply-demand balancing as export market is working and also
fluctuations in long products market would affect billet price too.
Long
Products
Long
products market began last week in Iran with serious downward trend due to
fears of more declines and completion between small sellers. By Monday market
sentiment changed as big sellers were out of market. When prices declined
significantly, big mills like Esfahan Steel co stopped delivering cargoes and
controlled market. Besides, stable billet price at IME helped long products
market. Within 3 working days prices were down by Rials1.2 million/mt and the
next 2 working days experienced Rials1million/mt improvement. Debar diameter
14-25 in Esfahan market was Rials15.7 million/mt by Saturday and finished the
week at Rials16.67million/mt ex-works including VAT by Thursday.
Current
fluctuations were firstly based on leader mills supply policy especially Esfahan
Steel Co and Khorasan Steel Co and secondly market view.
At
the moment demand level has no effect on the market as it is quiet. Within next
month, new Iranian parliament will start working and government projects would
be activated, therefore long products demand level should improve.
Flat
Products
Imported
HRC 2 mm thickness started week 18th with Rials19.1 million/mt on
truck in Anzali port including 9% VAT and custom duties and Rials18.6
million/mt on truck in Imam Khomeini Port including 9% VAT and custom duties.
Price was downward till Tuesday which suppliers stopped offering. This policy
made price finished the week at the same previous prices. New offers from CIS
are around USD480-500/mt fob which is higher than current market prices in Iran
retail market. It has been around 2 months than import orders level has
reduced. Besides, significant gap between price of thickness 2 mm and 2.5 mm
has led to more interest in cheaper price of thickness 2.5 mm from domestic
leader Mobarakeh Steel Co. Many pipe and profile producers are buying HRC 2.5
mm from domestic market despite its lower quality as it is affordable for them.
For
thickness lower than 15 mm market was almost stable and Kavian co was looking
for higher prices for HRP thickness more than 15mm. Limited transactions
finalized. Oxin co HRP is lower than Rials17 million/mt ex-work including VAT
and this didn’t let price improve. The mill is trying to increase price by
Rials500,000/mt for sizes more than 20 mm but has not been successful yet.
CRC
market experienced a quiet week. Foreign suppliers insisted on USD520-550/mt
cfr Iranian ports with limited availability. But Iran market is facing with
adequate supply of Mobarakeh Steel Co and very limited demand. Therefore CRC
market is downward these days and would continue this trend in coming future.
HDG
market was also calm and quiet with some sizes experiencing around Rials300,000/mt
decrease in prices.
Ex-rate:
Official rate: Rials30,333 /1USD
In open market: Rials34,330 /1USD