Billet
Billet price was upward in Iran and improved by
Rials150,000/mt during the week. Khouzestan Steel Co billet size 150 mm was
Rials13.15million/mt ex-work including 9%VAT and size 120 mm was
Rials12.7-13.1million/mt.
Lack of demand in long products market has led
to lower billet consumption. Therefore, collection and supplying scrap in
domestic market has also dropped and made scrap price improve.
Billet price increased but there is almost no
demand as long products market is quiet.
Long products
Long products were upward during last week. Average price of debar
diameter 14-25 mm was Rials15.3 million/mt ex-work Esfahan including VAT by
Saturday and finished the week at Rials200,000/mt higher.
Average price of I-beam size 14-18 mm improved from
Rials15.38million/mt to Rials15.65 million/mt ex-work Esfahan including VAT.
It was heard that some inventories of INSIG co will be offered this
week at cheap prices and buyers expect around Rials14.5/mt ex-work including
VAT for basket of sizes 14-15 mm.
Some re-rollers tried increasing prices and selling in cash during
the week but were not successful and prices were down by Wednesday.
During first 5 months of current Iranian Year ( 20 Mar-21 Aug) more
than 9.57million mt steel and iron ore has been exported from Iran. From this
amount, 7.305 million mt has been iron ore and 2.260 million mt has been semi
and finished steel products. This improvement is a good try for expanding
export market. Iran is facing will supply surplus, therefore the best policy
for authorities would be finding ways to improve export level more.
Flat Products
HRC 2 mm thickness was upward during week
35th by Rials500,000/mt to Rials18.8 million/mt on truck in Anzali
including 9%VAT and custom duty. Supply shortage is the main reason behind
rising prices. Besides, higher ex-rate also influenced HRC price.
Price of HRC 2.5-5 mm was unchanged and
sizes 6,12,15 mm supply level declined. Oxin co HRP is scarce due to supply
stoppage by the mill. When supply level improves prices will definitely drop
significantly.
CRC was faced with limited supply level and
its price improved by up to Rials500,000/mt. its import level has been
declining during last 2 months from 27,000 mt to 18,000 mt and around 7500 mt
during first 10 days of current Iranian month ( 22-31 Aug ). According to
import level and higher ex-rate, CRC price won’t be downward unless shipments
from Aktau port to Iran increase.
HDG market is still in limited supply,
though, some sizes experienced up to Rials300,000/mt rise. HDG consumption
level is so much limited and despite significant supply shortage, prices can’t
improve.
Ex-rate:
Official rate: Rials31,270/1USD
In open market: Rials 35,610 /1USD
03 Sep 2016