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