Billet
Billet
size 150 mm was Rials12.9million/mt ex-work including 9% VAT by beginning of
last week. Esfahan Steel co made long products prices upward by declining
supply level. This made billet price also upward. But by Monday, billet price
became downward again and finished the week at the same price which started the
week. There was no buying interest for billet size 150 mm at
Rials12.9million/mt.
Billet
size 125 mm was also Rials11.8-12.3 million/mt ex-work including 9% VAT with
limited buyers available.
In Iran
domestic market, billet and iron ore price are connected to each other. If
billet price drop, DRI price also would decline. But it won’t be an easy affair
due to government’s role in between for pricing.
As
billet size 125 mm is being produced by scrap, rise in its price will increase
scrap price too. Therefore, billet producers’ margin rate won’t change and this
would just damage long products producers. When billet price decline, scrap
supply level drops and would end in billet producer’s loss as lower scrap
supply level will finish in its higher price.
Meanwhile
re-rollers hope billet price would decline as the main factor for their
products pricing. But it won’t happen easily and billet price would stay at
around current level.
Long products
By last Saturday, market leader Esfahan Steel Co stopped offering
as an old policy for marking market active. Lack of supply made some of its
products rising by Rials500,000/mt. Some other mills made use of the situation
and increased their long products by Rials100,000-300,000/mt. But upward prices
didn’t helped demand level. The real winners were some other mills that didn’t
change their prices and increased their sale level.
By Monday prices got back to last levels and Esfahan Steel co
supply level get normal. But by end of the week market was again confused as
the mill stopped delivering some cargoes. Market sentiment will be clear in
coming days.
Flat Products
HRC 2 mm thickness was
unchanged during last week in Iran. It was Rials17.7 million/mt on truck in
Anzali port including 9% VAT and custom duty. During first 25 days of current
Iranian month (22 Jul-15 Aug) around 65,368 mt of HRC has been imported to Iran
whish is equal to last month’s (21 Jun-21 Jul) total import.
Due to change of management at
Aktau port, some problem has occurred during last 10 days and delays in loading
cargoes happened. End of May’s orders are ready to be loaded. When this happen,
supply level increase and prices may decline as demand level is still low.
HRC 2.5 mm thickness from Mobarakeh
Steel Co was in limited supply during last week. Thicknesses 3 mm or higher was
available in the market and prices stable. HRP size 15 mm was also in low
availability, but by end of the week Kavian co increased offers in limited
tonnage and prices were stable. Just sizes 20 and 25 mm were scarce and prices
have increased significantly. Oxin co delay in delivering cargoes has made
traders depressed as many of them have prepaid the mill.
CRC market was faced
with limited supply level and prices increased by Rials200,000-400,000/mt by
Sunday. But when prices increased market became quiet and prices stayed
unchanged. It was heard that around 20,000 mt of CRC will arrive in Iranian
ports from CIS in coming month which will affect market sentiment. Besides
domestic supply level for some thicknesses is limited by market Leader
Mobarakeh Steel Co.
HDG market was in limited supply and prices
improved by Rials300,000/mt, but demand level was still low.
Ex-rate:
Official rate: Rials31,069
/1USD
In open market: Rials 35,400/1USD
20 Aug 2016