Billet
Billet market
experienced a calm week in Iran. Prices were unchanged. Billet size 150 mm was
offered by Khouzestan Steel co at Rials12.9-13.1million/mt ex-work including 9%
VAT. Other mills were offering the same cargo at Rials12.6-12.9 million/mt
ex-work including VAT. Size 120 mm was also Rials12-12.4 million/mt in domestic market.
Long products prices
are at the bottom and its production level has declined significantly. Some
producers hope billet price decline but scrap market inventory level is not
enough. When billet production increase would increase scrap price, but will
rise billet supply level and accordingly its price decline. Besides, Khouzestan
steel co billet production is via DRI, therefore its price is depending on iron
ore price and other factors. Though, market participants do not expect any
significant change in billet market in near future.
Long products
Long products were downward slightly during last week in Iran. By
Saturday, average price of debar diameter 14-25 mm was Rials15.05million/mt
ex-work Esfahan including 9% VAT and finished the week at Rials15million/mt.
I-beam market resisted against upward pressure caused by some participant’s
speculations. Average price of I-beam size 14,16,18 mm was Rials15.1 million/mt
ex-work including VAT.
Angle and channel were down by Rials200,000/mt from Tuesday onward.
Long products market is experiencing seasonal sadness as many
companies are in summer Holidays. Besides, warm weather and water supply shortage
has postponed many projects. This situation may continue around 4 weeks.
Flat Products
HRC 2 mm thickness declined by Rials100,000/mt during week 31st
to reach Rials17.7million/mt on truck in Anzali port including 9% VAT and
custom duties. Import level is increasing and is expected to reach more than
50,000 mt in coming Iranian month ( 22 Aug-21 Sep). But consumption level is
dropping significantly and domestic product is also available in the market.
HRC 2.5-6 mm thickness is facing with supply shortage, but its
demand is also low.
For thickness 8-15 mm prices were almost stable. HRP thickness
higher than 15 mm from China or domestic leader Kavian steel co were also
stable. Demand level was also scarce. Just Oxin steel co product especially
thickness 20 & 25 mm was faced with supply shortage which will be solved
within next 2 weeks.
CRC market was downward with prices declined by Rials500,000/mt.
Import market was also quiet as it is not economic. Therefore, ports inventory
level is downward.
HDG market was also quiet and prices were down by Rials200,000/mt
during last week.
Ex-rate:
Official rate: Rials31,020 /1USD
In open market: Rials 35,270/1USD
06 Aug 2016