Billet
Billet market
was quiet during last week in Iran with transactions’ level very low. In
domestic market billet size 125 mm was averagely Rials13 million/mt ex-work including
9% VAT . Some mills were offering at around Rials12.8 million/mt. For billet
size 150 mm, private mills offer was around Rials13.5-14 million/mt ex-work
including VAT. Khouzestan Steel Co billet product was not available in the
market and Arfaa Steel Co billet was available at Rials14.1 million/mt ex-work
including VAT.
Chinese billet
price has declined to USD360/mt fob in global markets and CIS origin billet is
USD420/mt cfr Iranian ports. This downward trend may continue. As higher custom
duties for import announced by beginning of current Iranian year, imported
billet should reach USD300/mt cfr Iranian ports to be interesting for the
importers.
Big producers
such as Khouzestan Steel Co are absent in domestic market due to their export
market activity. This absence may help small mills which experienced heavy
losses during last year, to have more share in domestic market.
Long
Products
Long
products were downward during last week in Iran. Debar diameter14-25 mm dropped
from Rials16.56million/mt to Rials15.785million/mt ex-work Esfahan including 9%
VAT. Average price of I-beam size 14-18 mm also dropped from Rials16 million/mt
to Rials15.85million/mt ex-work Esfahan including 9% VAT. Downward trend in
other long products such as angle and channel was also seen.
As
this year government budget has not been announced yet, market participants
worried about more depression try to decrease their inventory level. But there
is no real demand in the market; therefore sellers are declining prices to find
customer. Besides, export orders in billet market are helping billet producers
to avoid declines.
Downward
trend in long products market has made domestic mills produce on daily basis and
buy raw materials for their daily needs. If market situation improve, this lack
of raw materials inventory at mills warehouses will put them in trouble. Billet
producers’ scrap inventory is at minimum level. If long products demand
improve, as market billet inventory level is low it can’t answer improved
demand. Therefore prices will surge suddenly.
Flat
Products
Flat
products were downward during week 19th like other steel products.
Imported HRC 2 mm thickness dropped by Rials300,000/mt at Anzali port to
Rials18.2million/mt on truck including 9%VATand custom duties. Its price at BIK
port dropped by Rials400,000/mt to Rials18.2 million/mt on truck including
9%VATand custom duties. Pipe and profile producers mostly are not any more
interested in imported HRC and prefer domestic material which its thickness is
more than 2.5 mm. Import offers are declining and have reached USD420/mt cfr
Iranian ports, but import level is declining as importers can’t have profit at
this price too.
Better
export demand for Mobarakeh Steel co flat products had made its domestic supply
level reduced, but due to lack of demand price of pipe and square bar is
declining.
For
thickness 2.5-10 mm, HRC market was quiet and almost stable despite balanced
supply-demand level. For thickness 15 mm market was facing with supply shortage
from Oxin Steel Co. Mobarakeh Steel co products didn’t changed significantly
due to market sadness. HRP thickness higher than 15 mm was downward. Oxin and
Kavian co material with thickness 20 mm or higher dropped by Rials300,000/mt
but no buyer was interested.
CRC
market was quiet and its price dropped by Rials500,000/mt during the week. This
downward trend was more obvious for imported cargoes. CIS suppliers are
offering CRC at USD520/mt cfr Iranian ports
with 2 month delivery ,USD30/mt lower than last offers. Besides, some
ready to shipment cargoes are being offered by traders at USD480-500/mt cfr
Iranian ports. This has made importers worried about future trend and try
selling their inventory faster. Mobarakeh Steel co service centers are also
offering CRC cheaper than imported cargoes, though, buyers prefer Moabarakeh
Steel Co product.
HDG
market was also quiet like CRC market and prices experienced around
Rials500,000/mt decrease and is expected to continue dropping in near future.
Ex-rate:
Official rate:30,360 Rials /1USD
In open market:34,480 Rials /1USD