Billet
Billet market started week 39th at USD354.5-357/mt
ex-work including 9% VAT for size 125 mm and USD360/mt for size 150 mm. By last
Monday, prices started rising due to some speculations and size 150 mm reached
USD368.5/mt and size 125 mm became USD365.7/mt.
This upward trend didn’t last long as buyers avoided dealing. Size
150 mm was offered at USD363/mt but still no buying interest.
Khouzestan Steel co offered its billet at IME ( Iran Mercantile Exchange) after a long
absence. Initial offer was for 80,000 mt billet, but was succeeded to sell just
35,000 mt of it. This made spot market sentiment more negative.
Month of Muharram and its religious mourning events is near, which will
make market almost quiet traditionally. Therefore nothing especial would happen
in coming weeks in Iran billet market.
Long Products
Long products market experienced fluctuations during last week in
Iran. Average price of debar diameter 14-25 mm started the week at
USD434-435.5/mt ex-work Esfahan including 9% VAT and reached USD445.2/mt till
Tuesday. Then market resisted against the upward trend and prices dropped by
average USD5.5/mt as some small mills increased discounts. Market was confused
and everybody preferred wait and see.
I-beam market was in the same situation. Average price of I-beam
size 14,16,18 mm changed from USD460.6/mt to USD471.8/mt ex-work including VAT.
Esfahan Steel co succeeded to sell 110,000 mt parcels of debar and I-beam at
base price of USD389.4/mt ex-work excluding VAT at IME as its speculative
policy worked. But afterward market was quiet from Wednesday and prices started
dropping.
Long products market won’t experience significant changes in coming
weeks as Month of Muharram and its religious events would affect market
activity.
Following debar and billet fluctuations; angle and channel price
also increased by USD8.3/mt. By Wednesday prices stopped rising as market
demand can’t support such fluctuations in prices.
Flat Products
Imported HRC 2 mm thickness began week 39th at
USD540.2/mt on truck in Anzali including 9% VAT and custom duties and finished
the week at USD536/mt. HRC price has been upward currently due to higher offer
prices from Kazakhstan and then lack of deals from this origin. Importers are
now concerned about coming month’s inventory levels, therefore work very
cautiously.
HRC thickness higher than 2 mm had a sudden surge in prices. By
Monday Mobarakeh Steel co offered its product at base price of USD433/mt ex-work excluding VAT at IME. But
market was faced with lack of inventory and this made retail market prices
upward. Though, HRC thickness lower than 6 mm changed from USD433/mt to
USD457/mt and thickness higher than 6 mm sold at USD455.5/mt with last deals
were done at USD437/mt.
This upward trend continued till Wednesday as some sizes like 12 mm
reached more than USD533/mt including 9% VAT. Following increased supply level
of Mobarakeh Steel co and coming quiet working weeks due to Muharram religious
mournings, flat products market will
stay calm in near future.
For thickness 6-15 mm supply level has been limited
currently especially for thickness 12mm. This has been a chance for import cargoes
as for size 12 mm price has improved by USD70/mt in a week to USD530.4/mt on
truck including VAT and custom duty.
HRP thickness higher than 15 mm has been faced with
supply shortage from Oxin Steel co during last week and Kavian Steel co was
still absent. There have been some rumors that Kavian co will restart market
supply in coming days which will affect prices.
CRC traders tried rising prices by beginning of last
week but faced with customers’ resistance. By Monday it was announced that
Kazakh suppliers have no allocation for sales to Iran. Therefore Iranian
traders forced market to accept USD8/mt rise in CRC price. Latest Kazakh origin
CRC sold to Iran has been USD470/mt cfr
in cash payment and 2 month delivery and Chinese one at USD510/mt cfr
with LC payment.
HDG market was quiet. By Monday Mobarakeh Steel co sold 1500 mt of
its HDG at IME at USD21.7/mt higher than before. Previous weeks mill’s HDG base
price was USD599.6/mt ex-work excluding VAT. The upward trend at IME made
retail market prices rise by USD8/mt. But demand level is still scarce.
Ex-rate:
In open market: Rials 35,820 /1USD
01 Oct 2016
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Mona Taban
Iran Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home