Billet
Billet market was quiet and depressed during
last week in Iran. Size 150 mm billet from Khouzestan Steel co was Rials12.85
million/mt ex-work including 9%VAT. Private mills were also offering billet size
125 mm at Rials12.9-13.2 million/mt ex-work including 9%VAT.
By Tuesday, Khouzestan Steel co sold 33,400 mt of
its billet at Rials12.5 million/mt ex-work including 9%VAT. Billet supply level
is reducing slowly.
In Far-east, Iranian billet is becoming
interesting for importers. Iranian billet export market is improving and it
would reduce domestic market supply level. This would be a chance for small
producers to use their production capacity, but they would need scrap. By higher
export level, billet price would rise in domestic market and increase pressure
on debar price.
Long products
Like previous weeks, long products prices were up by
Rials100,000/mt on Saturday and started declining by Monday onward. Meanwhile
just Esfahan Steel co insisted on rising prices. Average price of debar
diameter 14-25 mm in Esfahan market improved by Rials150,000/mt to Rials15.55 million/mt
ex-work including 9%VAT by end of the week but in Ahwaz market it was down by
Rials100,000/mt to Rials14.75 million/mt ex-work including VAT. Some sellers
were also ready to discount by Rials50,000/mt more.
Angle and channel were down a little by beginning of the week and
stayed unchanged till end of the week.
Long products mills had been trying together to increase prices
currently, but have not achieved this goal as market is quiet. Market was faced
with downward trend in prices by a private mill and some traders offering INSIG
co debar by middle of last week. Meanwhile market demand was still scarce.
Besides, Iran steel market is faced with lack of capital as
investors are not interested in this market. It is full of risks and investors prefer
putting their money in banks.
Accordingly, steel contracts at IME are declining day by day and
mills prefer direct deal with customers. These are all bad news for Iran steel
industry.
Flat Products
HRC 2 mm thickness experienced around Rials100,000/mt decline
during last week in Iran import market and finished at Rials18.6 million/mt
including 9%VAT and custom duties on truck in Anzali port. Korean product was
also available at Rials19 million/mt on truck in BIK port including 9%VAT and
custom duties.
HRC 2.5-5 mm thickness is faced with limited supply level, but lack
of demand from pipe and profile producers didn’t let prices change. Thickness
6-15 mm were also stable. Just size 12 mm
Supply level was low but import cargoes in Anzali port solved this
shortage.
HRP thickness 15 mm or higher was still in limited supply from
market leaders Oxin and Kavian co. Oxin co offered HRP a little and made some sizes
decline by up to Rials500,000/mt. Supply level is low but market cannot absorb
high prices any more.
CRC market was downward by average Rials300,000/mt. 1000-3000 mt
parcels were being offered in the market and increased downward trend in
prices.
HDG market was also downward and some sizes reduced by
Rials300,000/mt.
Ex-rate:
Official rate: Rials31,324/1USD
In open market: Rials 35,480 /1USD
10 Sep 2016