Billet
Billet price was almost
stable during last week in Iran. Domestic billet size 125 mm was offered at
Rials12.7-13.4 million/mt ex-work including 9% VAT. Size 150 mm was
Rials13.5-13.8 million/mt ex-work including 9% VAT. Leader producers were not
in domestic market like previous weeks. Khouzestan Steel Co offered 100,000 mt
of its billet at IME ( Iran Mercantile Exchange) by Monday and sold 85,000 tone
of it.
Long products demand
level has declined significantly and mills don’t have enough liquidity to buy
billet at high tonnage. Prices are downward and investors are not interested in
buying steel.
Global prices were
downward slightly. Imported billet CIS origin was USD330/mt cfr and Chinese one
at USD290/mt cfr Iranian ports. But import custom duties are high, therefore
not interesting for Iranian importers.
Long Products
Debar price was
slightly downward during first half of last week in Iran after that started
declining till end of the week. Market speculations for increasing billet sales
level was the reason behind increasing trend. Some other market participants
had a different view. They believe low supply level of billet made long
products prices upward and then after higher supply level of billet, long
products became downward again. Long products production level is at the bottom
and mills avoid rising inventory level of billet.
Generally long
products were downward. Average price of debar diameter 14-25 mm was
Rials15.583 million /mt ex-works Esfahan including VAT on Saturday and finished
the week at Rials15.388 million /mt.
I-beam price
was stable and angle and channel dropped by Rials300,000/mt.
Holly month of
Ramadan has made long products demand level at the bottom and is not expected
to improve this week.
Flat products
Imported HRC 2
mm thickness started week 23rd
at Rials17.45 million/mt on truck in Anzali including 9% VAT and custom
duties and Rials17.3 million/mt on truck in Imam Khomeini Port including 9% VAT
and custom duties. Till end of the week its price at Anzali port dropped by
Rials50,000/mt and was unchanged at Imam Khomeini port. HRC sizes 2.5-6 mm
didn’t changed significantly and is under control of domestic leader Mobarakeh
Steel co. Their import offer is USD400/mt cfr Anzali port and if decline by
USD50/mt may be interesting for importers. For thickness 10-40 mm market was
stable. Its demand level was low and Chinese offers are limited too, Besides,
Oxin co supply level is limited. Some market participants expect prices improve
due to limited supply level, but some others believe lack of demand won’t let
prices improve.
Imported
CRC was down by up to Rials2million/mt
from Rials2.1million/mt in Northern and Southern ports including VAT and custom
duty to Rials19.5 million/mt. Importers have lost a lot for CRC deals as their
minimum purchase price has been USD480/mt cfr Anzali which would be finished at
Rials22million/mt including VAT and custom duty. Import offer of USD400/mt cfr
would be finished at current market prices and still no profit for importer.
Import offers will decline in near future. Last price of CIS origin CRC has
been USD430/mt cfr Northern ports.
HDG market was
quiet and prices followed downward trend in CRC market. Market inventory level
is limited too.
Ex-rate:
Official
rate: Rials30,500/1USD
In open market: Rials 34,670 /1USD
11 June 2016