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Iran Steel market Trend in Week 49th , 2016

Billet

Domestic billet market was faced with some fluctuations during last week in Iran. Domestic billet size 150 mm started the week at USD384-389/mt ex-work including 9%VAT on Saturday. Prices were up and down every day and finally finished week 49th at USD399/mt ex-work including VAT. Meanwhile scrap price was upward and passed USD256/mt.

Last Wednesday, Khouzestan Steel co sold 20,000 mt of its slab at IME at base price of USD428/mt ex-work excluding VAT. But another leader Mobarakeh Steel co had sold same material 2 days before at USD389/mt base price. Besides, Khouzestan Steel co slab price has increased by USD95/mt within 40 days. This change made market participants expect improvements in billet market. USD67/mt gap between billet and slab base price is not logical. Therefore, billet base price may improve by USD26/mt at IME.

As billet pricing in Iran is also dependent on pellet and DRI, market participants expect price of these raw materials also increase.

 

Long Products

Long products were upward during last week in Iran just due to market disorder and speculations. Domestic debar diameter 14-25 mm was USD458/mt ex-work Esfahan including 9% VAT on Saturday and finished the week at USD470.5/mt. Market was faced with daily fluctuations.

I-beam price was upward as market leader Esfahan Steel co policy seems to be rising prices. Current price is USD496/mt ex-work including VAT and is expected to reach USD512/mt.

Some market participants believe long products prices will improve when billet price increase in near future. Some others think prices have picked as inventory level is too much and prices have been surging significantly during last month. Last Thursday some mills were in the market offering long products, which has been unusual during last 2 months. This shows they are not confident about potential price increases or at leads are in liquidity shortage.

 

Flat Products

Imported HRC 2 mm thickness was USD588/mt on truck in Anzali including VAT and custom duty on last Saturday in Iran. By Monday, after surge in ex-rate, HRC price improved to USD596-601/mt. Market couldn’t persist and by downward trend in ex-rate HRC price also declined to USD593/mt. Meanwhile demand was scarce. HRC 2 mm thickness import level has declined significantly due to lower supply by Kazakhstan suppliers from 2 months ago after global prices started rising. Now it is expected to influence Iran market in coming weeks obviously.

HRC thickness 2.5 mm or higher experienced a significant surge in prices by domestic leader Mobarakeh Steel co. Base prices at IME were up by 15-20% compared to 3 weeks ago and reached USD508-511/mt ex-work excluding VAT. This change made retail market distracted. Sellers in retail market increased their offers by USD31/mt and then stopped selling.

As import prices are more than USD500/mt cfr Iranian ports, with ex-rate improvement, finished cost price would be more than USD639/mt including VAT and custom duties for importers. Therefore domestic mills have chance for rising prices.

 Last Monday CRC price experienced around 10% improvement compared to 3 weeks ago at IME. Mobarakeh Steel Co products reached USD543/mt ex-work excluding VAT and made import cargoes reach USD742/mt on truck in Anzali including VAT and duties. A day after this change, import price for thickness 0.7-2 mm was USD691/mt on truck in Anzali. Generally, Kazakh suppliers are not offering CRC and Russian material can’t be available in Iranian ports till next 3 months due to winter freezing weather. Chinese material is USD600/mt cfr Iranian ports which would cost USD716/mt after custom duties and VAT. Upward trend made end users left market and transactions level dropped significantly.

HDG base price at IME was up by 12% during last week compared to 3 weeks ago and reached USD939/mt. This made retail market upward but demand was scarce.

 

Ex-rate:
In open market:  Rials 39.100 /1USD

10 Dec 2016

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Iran Steel Service Center

IFNAA News Agency

http://www.ifnaa.ir/en/home

Dec 11, 2016 08:33
Number of visit : 866

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