Billet
Billet size 150 mm had
a stable week in Iran. But size 125 mm improved by Rials400,000/mt to Rials13.3
million/mt ex-work including 9% VAT. The upward trend was due to lower
production rate and increase in scrap price as a raw material for producing
billet size 120 /125 mm.
After Holly month of
Ramadan in coming weeks scrap supply will improve and would affect scrap and
billet price.
At the moment CIS origin
scrap is USD180-190/mt cfr Northern ports and European containerized Shredded
steel scrap is USD230-240/mt cfr Southern ports in Iran. But due to import
costs and long products market quiet situation, market participants prefer
buying from domestic market despite importing scrap.
Imported billet size
150 mm is USD280/mt cfr Anzali port, after custom duty and VAT would costs more
than Rials13.6 million/mt for importers. In domestic market Khouzestan Steel co
billet is Rials13.2 million/mt and Khorasan Steel Co product is Rials13.4
million/mt ex-works including 9% VAT.
Market participants
don’t expect improvement in Iran billet market in near future as long products
market is quiet and billet production capacity is high in domestic market.
Long Products
Long products were almost stable during week 26th
in Iran.
Average price of debar diameter 14-25 mm changed from
Rials15.342million/mt to Rials15.320million/mt ex-work Esfahan including
VAT. I-beam size 14-18 mm also changed from
Rials15 million/mt to Rials15.050million/mt
ex-work Esfahan including VAT. Market was not active during last week due to Imam Ali’s
martyrdom mourning ceremony. Some market participants hope for some traditional
improvements in prices after Holly month of Ramadan in coming weeks. Producers
are also eager to increase prices but any fluctuation won’t be more than
Rials300,000-500,000/mt as production capacity is high. When prices improve,
mills increase production level, therefore any upward trend won’t last more
than 3 or 4 days.
Flat Products
HRC 2 mm thickness was downward during last week
in Iran. Its price dropped by Rials300,000/mt to Rials18.1 million/mt on truck
in Anzali port including custom duties and 9%VAT and also declined by
Rials200,000/mt to Rials17.8 million/mt on truck in Imam Khomeini port. At the
moment new import offers are USD360/mt cfr Anzali port which will be finalized
at Rials16.5 million/mt after custom duties and VAT. After 3 months downward
trend in import level, good purchases have been done recently. Chinese offer
was also heard at USD350/mt cfr.
HRC 2.5-4 mm thickness was up by
Rials500,000/mt due to limited supply level from market leader Mobarakeh Steel
Co to Rials18.3 million/mt ex-work including 9% VAT. Some sellers were ready to
deal on Rials18 million/mt.
For thickness 6-15 mm, market was
quiet and unchanged.
For thickness 15 mm or higher, Oxin
co HRP was upward. Thickness 20 mm was offered at Rials17.5 million/mt ex-works
including VAT but higher supply level made it downward by Rials500,000/mt.
Thickness 30 mm was priced at Rials16.3-16.5 million/mt and thickness 40 mm was
Rials15.7 million/mt. Oxin co products is expected to be downward in price in
coming weeks except the mill deliver cargoes with delay.
Chinese or Russian origin imported
HRP is USD350-360/mt cfr Iranian ports. Its cost price for importers would be
Rials16.6 million/mt including custom duties and VAT. At the moment thickness 8,10,12
mm is available at Rials17.6 million/mt on truck in Anzali port including
custom duties and VAT and Rials18 million/mt at Imam Khomeini port. It seems
that HRP import market would compete with domestic leaders Oxin and Kavian co
in near future.
CRC price improved by last Sunday but lack of demand
made its price downward again. Imported CRC thickness 0.7 mm or higher is
Rials20.50million/mt on truck in Anzali port including 9% VAT. Russians are
offering at USD420/mt cfr Anzali port, which will be finished for importers at
Rials20 million/mt. CRC import level have been downward during last 3 Iranian
months. Declining from 55,000 mt (20 Apr-20 May) to 18,000mt (21 May-20 Jun)
and 12,000 (21 Jun till now). Iranian traders mostly avoid importing CRC due to
many problems.
HDG market experienced some improvements
during the week but market sadness and stable CRC price moved HDG price back to
last level.
Ex-rate:
Official rate: Rials30,725/1USD
In open market: Rials 35,270 /1USD
02 July 2016