Billet
Billet price was stable
during last week in Iran. Khouzestan Steel co product was not available in the
market but Arfaa Steel co billet was offered at Rials12.9 million/mt ex-work
including 9% VAT. Private mills billet size 150 mm was being offered at
Rials12.8-13.4 million/mt ex-work including 9% VAT but demand level was
limited. Billet supply level will be more limited in coming weeks. Export
demand especially in Far- east has increased and leader mills such as
Khouzestan Steel co will pay more attention to export market.
If domestic billet
price increase, debar price would rise and lead to lower sale level. It will
result in their lower production level. Therefore, rising billet price is not
possible.
In coming days, market
will be silent due to middle- week religious holiday.
Long Products
Long products market
was quiet during last week in Iran and producers were not successful in rising
prices. Some small mills which were losing money, decided to give customers
more discounts despite their previous decision with other mills. They want to
increase sales level to survive.
In this situation
small mills will win. The only solution for big mills would be export increase.
Average debar price diameter
14-25 mm was Rials14.7 million/mt ex-work Ahwaz and Rials 15.6 ex-work Esfahan
including VAT. Just I-beam price improved due to Esfahan Steel co pricing
policy. Average price of I-beam size 14, 16, 18 mm improved from
Rials16.1million to Rials16.35 million/mt ex-work Esfahan. Angle and channel
were also downward during last week.
Flat Products
HRC 2 mm thickness was
unchanged during last week at Rials18.6 million/mt on truck in Anzali including
9% VAT. Kazakh origin HRC has been rising USD20/mt to USD390-400/mt cfr Anzali
port. This policy will affect Iran market later after coming holidays.
HRD 2.5-5 mm supply
level has declined and prices were unchanged as demand is low.
In HRP market, Oxin and Kavian Steel Co supply level had
stopped.
CRC market was quiet.
Kazakhestan producers has increased their offers to USD460/mt cfr Iranian Ports
but in domestic market prices has declined by Rials500,000/mt. Market is quiet
and prices may decline more.
HDG market was also
quiet. Market availability was limited but demand level is also low.
Ex-rate:
Official rate: Rials 31,379/1USD
In open market: Rials 35,580
/1USD
17 Sep 2016