Billet
Billet market was stable during last week in Iran. Domestic billet
size 120 mm was Rials12.7-13.1 million/mt ex-work including 9% VAT and size 150
mm was offered at Rials13.5-13.8 million/mt ex-work including VAT. Khouzestan
Steel co and Arfaa steel co billet was not available in domestic market but
Khorasan Steel co product was Rials13.5million/mt with no buying interest due
to long products market sadness. There are some rumors about possible downward
trend in billet market. Some mills are ready to discount but Ramadan market
quiet trend, summer seasonal sadness and coming holidays all have increased the
depression. Meanwhile other factors influence billet price in Iran. An
important one is government controlling power as state mills are main suppliers
of billet. They can’t and won’t decrease prices simply. They can export their billet
despite declining domestic prices and making market condition worse.
Long Products
Long products market experienced a stable week in Iran. Average
price of debar diameter 14-25 mm in Esfahan market stayed at
Rials15.4million/mt ex-work including 9% VAT. Khorasan Steel co products were
also unchanged at Rials15.25 million/mt ex-work including VAT. Demand is at the
bottom and there is no real consumption, besides production level has also
dropped significantly.
Other long products such as angle and channel were also stable
during week 24.
Some market participants expect downward trend in price of long
products but the fact is that prices are near the bottom. Second half of the
year in Iran may experience some improvements in the market.
Flat Products
HRC 2 mm thickness started week 24 at
Rials17.6 million/mt on truck in Anzali including VAT and Rials17.3 6 million/mt
on truck in Imam Khomeini port. They finished the week stable at Anzali port
but Rials300,000/mt lower in the Southern port. The reasons behind this decline
are lack of demand and also supply level.
Market leader Mobarakeh steel co HRC
thickness 2-10 mm was almost stable during last week in Iran.
For thickness higher than 10 mm market was faced with limited supply level of
Kavian and Oxin co . Some limited Chinese cargoes helped market condition. Some
parcels of CIS origin thickness 6-12 mm was available in Anzali port which was
near Mobarakeh Steel co offered prices, therefore won’t affect market
significantly.
Many market participants hope market
would improve after Holly month of Ramadan as activities will increase.
CRC market was quiet and average price
changed from Rials19.5million/mt to Rials20.5million/mt on truck in Anzali
including VAT. Kazakhstan suppliers have hold July delivery cargoes at
USD420/mt cfr Anzali, but demand is limited and they have declined prices to
USD380/mt cfr or lower. Importers are not interested in buying at current
levels.
HDG market was depressed during the week
and prices dropped by Rials200,000/mt.
Ex-rate:
Official rate: Rials30,528/1USD
In open market: Rials 34,580 /1USD
18 June 2016