Billet
Billet price was upward
during last week in Iran market. Billet size 125 mm in domestic market was
around Rials12.9-13.4 million/mt ex-work including 9% VAT. Size 150 started the
week at Rials13.1-13.2 million/mt but reached Rials13.7million/mt ex-work
including VAT due to limited supply level. It’s around one month that market
leader Khouzestan steel co is not offering billet in domestic market. Some
other mills like Arfaa co are not in the market too. Therefore supply level has
declined and long products mills have to produce on daily basis due to low
billet inventory. Import billet market is also quiet. CIS origin billet is
USD340/mt cfr Northern ports and Chinese product is around USD300/mt cfr
Southern ports. Importing billet at these prices is not affordable.
Downward trend in
global billet markets has not affected export offers of Iranian mills yet. If
downward trend continues, Iranian mills will prefer offering to domestic market
despite exporting.
Long Products
Long products were downward by beginning
of week 22 in Iran but became upward by Tuesday. Average price of debar
diameter 14-25 mm improved from Rials15.14million/mt ex-work including 9% VAT
to Rials15.6million/mt by end of the week. Khorasan steel co debar diameter
14-28 mm also improved by Rials300,000/mt to Rials15.3 million/mt. Channel
price increased by Rials200,000/mt to Rials17.1 million/mt ex-work including VAT
for sizes 6-16mm. I-beam size 14-18 mm started the week at
Rials15.717million/mt ex-work including VAT and was downward till Wednesday and
finished the week almost stable.
Long
weekend made market upward due to speculative policies of traders, but market
participants expect prices back to last week level and became stable in coming
days when activities increase.
Flat Products
HRC 2 mm thickness experienced downward
trend during last week in Iran. Imported material was down by Rials400,000/mt
in Anzali port to Rials17.5 million/mt on truck including 9% VAT and custom
duties. It was also down by Rials300,000.mt in Imam Khomeini port to Rials17.4
million/mt on truck including 9% VAT. HRC 2 mm thickness import level has been
downward during current quarter in Iran. It declined from 104,000 mt in first
month of current Iranian year to 74,000 mt during last month. As global prices
are downward, import level will continue declining. Import offers are at
USD380/mt cfr Northern ports and USD310/mt cfr Southern ports. Therefore,
Chinese material would be more interesting. But current purchases of Chinese
HRC will arrive in next 2 months and would affect market later.
HRC 2.5- 5 mm experienced a stable week. For thickness 6-15 mm
prices were down by Rials100,000/mt due to higher import cargoes in the market
and low demand. HRP market experienced
some improvements due to limited supply level by market leader Oxin steel Co .
Sizes 25-40 mm increased by Rials100,000/mt and is expected to continue this
trend in coming days.
CRC market was also downward. Its import level
increased to 56,000 during last Iranian month from 35,000 mt a month before.
But demand level is limited. Besides, imported CRC is expensive compared to
domestic offers.
HDG market was also downward and buyers’
market.
Ex-rate:
Official rate: Rials30,478/1USD
In open market: Rials 34,730 /1USD
05 June 2016