Billet
Iran billet market experienced a
quiet week. Domestic billet size 125 mm was USD351-356/mt ex-work including 9%
VAT. Size 150 mm was also USD356-359/mt.
Imported billet size 150 mm was also
USD359/mt on truck in Anzali port including 9% VAT and custom duty.
Khouzestan Steel co offered its 150
mm billet on Tuesday at IME at base price of USD351/mt excluding VAT, with no
taker. Long products production level has dropped to low levels and made billet
demand limited. Besides, there are cargoes in retail market available from last
purchases from Khouzestan Steel co at cost price of USD356/mt ex-work including
VAT. This won’t let the mill change its new offer prices.
Global billet price has been upward
currently and this would be a chance for Iranian mills to increase export
level.
Long
Products
Debar price was almost stable during
week 43rd in Iran. Average price of debar diameter 14-25 mm ex-work
Esfahan was USD441/mt including VAT. I-beam price increased due to Esfahan
Steel Co pricing policy especially for size 14 mm from USD456/mt to USD481/mt
ex-work including VAT. Debar producers
tried rising prices and selling in cash but market passed a quiet week. The
market depression was a record during last 8 months.
Angle and channel price increased by
USD8/mt by end of the week but there was no buyer in the market.
It has been a few weeks that
producers are trying to change prices and payment terms but market is quiet and
lack of demand is serious. Increasing export level may help domestic market.
Flat
Products
HRC 2 mm thickness was upward during
last week from USD539/mt to USD558/mt on truck in Anzali including 9% VAT and
custom duty. There were two reasons behind this upward trend:
1- Higher ex-rate
2- Limited CIS origin supply level
and rising fob prices
This material has increased by
USD40/mt during last month. Besides, CIS mills are negotiating for January
production. Some traders which had ordered at low prices before, have 2,000 mt
parcels at USD440/mt cfr Anzali port available. With current ex-rate, its cost
price would be USD539-553/mt on truck in Anzali including VAT and custom
duties.
HRC 2.5-6 mm was up by USD22/mt due
to limited supply. Sizes 8-15 mm were also up by USD11/mt due to same reason.
Higher prices in global markets helped this upward trend too as Iranian traders
became confident that import material can’t compete with domestic market.
HRP thickness 15 mm or higher is in
shortage especially from Oxin co. Therefore, prices were upward. Some sizes
experienced up to USD28/mt improvement. Market became quiet by end of the week.
CRC market was strong with prices up
by USD28/mt due to limited CIS supply level and ex-rate fluctuations. Some
market participants expect this trend continue for a month. Some others believe
cheap purchased cargoes from previous months are on the way to Iran. Market
can’t accept higher prices in this condition. Some CIS products are offered at
higher prices compared to domestic leader Mobarakeh Steel Co, when domestic one
is in better quality. Besides, when prices rise demand will decline more.
HDG market was upward for some sizes
up to USD28/mt. Market inventory level is downward as production is declining
due to higher cost for CRC and zinc.
Ex-rate:
In open market: Rials 36.190 /1USD
29 Oct 2016
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Mona Taban
Iran Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home