Billet
Iranian billet market was stable during
last week. Domestic billet size 125 mm was Rials12.5 million/mt ex-work
including 9% VAT and size 150 mm was Rials12.8-12.9 million/mt . Khouzestan
Steel Co billet is not available in domestic market as the mill is focusing on
export. Scrap price improved a little during last week in Iran, therefore some
rises for billet in near future would be expected. Debar production level has
also declined which would help its price rise and affect billet market
positively too.
Billet demand- supply level is almost the
same, which will make market sentiment more sensitive. Any small change in
demand level will affect price easily. In coming weeks, Iran billet spot market
would experience some changes.
Long Products
Long products were downward slightly
during week 38th in Iran. Debar price dropped by average
Rials100,000/mt. Angle and channel were also down by the same.
Debar diameter 14-25 mm dropped by
Rials180,000/mt to Rials15.5 million/mt ex-work including 9% VAT. But last week
changes were not general trend of long products market as some factors such as
middle-week religious holiday and end summer holiday times has affected market
sentiment.
Market participants expect improvements
in coming weeks.
At the moment big billet producers are
not in domestic market as focusing on export. Therefore, debar mills has declined production. If debar
demand level improves, market may face lack of billet. Increasing domestic
billet supply level would also takes some time and this may lead to higher
debar price.
Flat Products
HRC 2 mm thickness was Rials18.7
million/mt on truck in Anzali including 9% VAT and custom duty last Saturday,
but by Sunday price started hiking to Rials19.35 million/mt. The upward trend
was due to absence of some leader suppliers. Besides, Kazakh suppliers changed prices unexpectedly.
HRC 2.5-5 mm thickness was still in lack
of supply, but low demand didn’t let prices improve. Thickness 6-15 mm was also
in supply shortage due to absence of some producers. Thickness 6,10 and 12 mm
were offered less. Kavian Steel co HRP 15 mm thickness or higher was not
offered. Demand was low and prices stayed unchanged. Oxin co HRP was available
after some weeks limited supply. Market closure for religious holiday and quiet
sentiment made price drop by Rials100,000/mt.
Market participants are still worried about HRP supply.
CRC market was quiet due to summer
holiday time. Kazakh origin CRC increased by USD10/mt in Iran import market and
started testing market with USD470/mt cfr Anzali port. But this price is much
higher than current market level and importers are not interested in buying.
CRC demand level is low and buyers avoid entering this market. Besides,
Chinese CRC is not like last year
competitive in Iran import market. High prices made Chinese CRC stay out of
Iran market. Market leader Mobarakeh Steel co supply level is limited and its
price may rise in coming months significantly as increasing supply level would
takes some time.
HDG market was unchanged.
Some parcels were being offered from UAE and Russia in Iranian ports but demand
level is steel scarce.
Ex-rate:Official
rate: Rials 31,406/1USD
In open market: Rials 35,640 /1USD
24 Sep 2016
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Mona Taban
Iran Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home