Billet
Billet market was downward during last week in
Iran. Domestic billet size 150 mm started the week at USD389-400/mt and
finished the week at USD368-381/mt ex-work including 9% VAT .
Khouzestan Steel co sold 42,000 mt of its billet
at IME on Wednesday at USD376/mt ex-work excluding 9%VAT. This deal made market
participants confused as traders were selling their billet at USD395/mt
including VAT. Though, how Khouzestan Steel co sold its products at USD411/mt
including 9% VAT.
Main reason behind downward trend was lack of
demand due to religious national Holidays. Besides, debar producers are not eager
to buy billet and just focus on selling their finished products.
Cold weather and lack of demand and less working
days this week would made billet market continue downward trend for a while.
Long Products
Long products
were downward during week 47th in Iran. By last Saturday prices were
down up to USD3/mt and downward trend lasted till week end. Debar diameter
14-25 mm started the week at USD469/mt and finished at USD456/mt ex-work
Esfahan including VAT. Traders started offering their last purchased cargoes of
debar and made downward trend worse. Besides, market would be quiet in coming
days due to mourning holidays and this sentiment didn’t let producers think
about rising prices.
Some market
participants expect debar price reach USD480/mt next week. But real demand is
low and any improvement in prices is unlikely till inventory levels decline
significantly.
Angle and
channel were also down by up to USD11/mt and is expected to continue as billet
market is also downward.
Flat Products
HRC 2 mm
thickness started week 47th at USD584/mt on truck in Anzali
including VAT and custom duty but lack of demand made it decline to USD576/mt.
HRC thickness 2.5-6 mm experienced steady week as supply level was limited.
Sizes 8-40 mm
were down by USD13/mt. Oxin and Kavian Steel co increased supply level of their
plate last week. Higher supply level and low demand and stable import prices
made prices down. Some traders were offering USD3/mt lower than mills. It would
be noted that higher ex-rate justified stable HRC import offers and declined
negative effect.
Iran CRC market
was stable as:
1- Import
offers were unchanged by CIS producers
2- Previous
uptrend made end users leave market
3- Higher supply
level by foreign sellers
Market
stagnancies made end users left market and sales level dropped. Iran CRC market
is dependent on foreign sellers move. January is near and global markets prices
would change, therefore, Iran market prices may move down by up to USD27/mt.
HDG market was not
active. Market inventory is low but downward CRC made HDG price decline.
Ex-rate:
In open market: Rials 37.500 /1USD
26 Nov 2016
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Iran Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home