Billet
Billet price increased significantly
during last week in Iran. Last Sunday, Khouzestan Steel co sold 16,700 mt of
its billet at base price of USD383/mt ex-work excluding VAT at IME. This
transaction changed market sentiment suddenly. Khouzestan Steel co is market
leader and its upward trend has made market imbalanced. Therefore, other billet
producers has followed and increased prices.
As billet price is a base for pricing
iron ore, pellet and DRI, market participants expect these materials prices
rise in coming future.
As billet price has reached USD400/mt
fob, Khouzestan Steel Co would have good margin by increasing its export level.
Besides, when the mill export rise, small producers would have better chance in
domestic market.
Khouzestan Steel Co also sold 20,000 mt
of its slab during last week at USD404/mt ex-work at IME. These two deals made
all long and flat steel products prices improve significantly. Billet price at
retail market also surged and reached USD408/mt ex-work including 9% VAT.
Besides, long products suppliers are working at minimum capacity. Billet price
increase made market quiet and billet prices were down by USD3-5/mt by end of
the week.
At the end of the week , Khouzestan Steel
co billet was USD408/mt including VAT with 3 days delivery. Scarp price was
also down, though, private mills billet price would drop in near future.
Long Products
Long products prices were up sharply
during last week in Iran. Debar price experienced two round of increases on
last Saturday by USD3/mt and then USD5/mt. Then many mills stopped offering. By
Sunday when billet price surged upward at IME, debar price also increased by USD27/mt.
This upward trend continued by Monday. There was no real demand in the market
but traders were offering their purchased debars at retail market. This move
made prices down by Wednesday. Market participants anticipate up to USD14/mt decline for debar prices before stabilization
due to lack of demand. But billet price increase won’t let long products price
decline sharply. Prices decline as
traders were competing to sell their cargoes. Besides, coming week religious
holidays and market low activity has made market sentiment negative.
Other long products experienced same
trend as debar during week 46th in Iran. I-beam price increased from
Saturday till Tuesday and then declined. Upward trend in first half of the week was about USD35/mt. Angle and channel
were also up by USD27/mt. By Tuesday onward, prices were stopped. Angle and channel would
be downward in coming days, but I-beam future price depends on Esfahan Steel co
pricing policy.
Flat Products
HRC 2 mm thickness was upward by beginning
of last week as increased by USD11/mt to USD598/mt on truck in Anzali including
9% VAT and custom duties by last Monday. Then market became quiet and was USD590/mt
on Wednesday. Cargoes releasing from custom office these days are 3 month ago
purchases when prices were much cheaper that current prices. 3 months ago
average price of this material was USD380-400/mt cfr Anzali port, but at the
moment it has reached USD510/mt cfr Anzali.
Global prices have increased, but
also supply level to Iran has declined from foreign sellers too. Therefore,
Iran flat products import market is facing with two factors these days: lower
supply and higher prices.Some market participants expect price reach USD625/mt
in near future. But more upward trend seems unlikely to be accepted by pipe and
profile producers.
Sizes 2.5-15 mm thickness was
upward by first half of the week, then became quiet. Supply level is limited
for these sizes, therefore, downward trend seems unlikely.
HRP thickness 15 mm or higher was
upward and some sizes reached USD612/mt ex-work including VAT. Kavian and
Oxin co supply level was so much limited
CRC market was stagnant and confused during last week.
Sellers started the week rising prices but offers were different with USD500/mt
gap at some cases. By Monday Kazakh origin CRC was USD585/mt cfr Iranian ports with
supply level scarce.
Domestic supply level by Mobarakeh Steel co is also
limited and its prices were around USD734/mt ex-work excluding VAT. Some market
participants expect domestic price reaching USD816/mt . But seems that market
may not absorb such a rise. By last Tuesday onward importers increased offers
levels. This made prices a little down and may drop up to USD14/mt in coming
days. Demand level is low and market need time to accept base price of USD734/mt
ex-work excluding VAT.
HDG market was up by USD19-27/mt during last week as
supply level is limited.
Ex-rate:
In open market: Rials 36.780 /1USD
21 Nov 2016
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Iran Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home