Billet
Billet market was
downward during last week in Iran. Domestic billet size 150 mm started the week
at USD394/mt ex-work including 9% VAT and finished it at USD381/mt. Rumors
about offer of USD379/mt was also heard.
Billet downward trend
had two main reasons:
1- Long products prices
have reached the peak
Many market
participants are worried about possible downward trend in long products, which
seems near. Current upward trends have been due to pressures from production
costs and leader mills pricing policy. Small mills would follow market trend
and this fear of declines seems highly possible.
2- Warehouses are full
of cheap or expensive inventories and lack of liquidity is evident.
Last Sunday, Kish South
Kaveh Steel co offered 50,000 mt billet size 130 mm at base price of USD381/mt
ex-work excluding VAT at IME, but failed to close deal. On Tuesday the mill
offered the half tonnage at USD366/mt, but again unsuccessful to sell.
Besides, Khouzestan
Steel co sold 25,000 mt billet size 150 mm at base price of USD391/mt excluding VAT on Wednesday which made market
participants surprised as 2,000 mt of the same material at USD389/mt ex-work
including VAT had no buyer in retail market at the same day.
Downward trend
continued on Thursday. Cold and snowy weather made market participants expect
unchanged market trend in coming days as long products demand would decline.
Long Products
Debar price started week 50th
upward as debar price was USD450-488/mt ex-work Esfahan including VAT compared
with USD473/mt, at the end of previous week. Debar price ex-stock in Tehran was
also USD457/mt including VAT. Esfahan Steel Co offered its debar basket at IME
on Sunday at base price of USD434/mt and made market trend upward. By Monday
onward, prices were down on daily basis. Esfahan Steel co debar basket declined
by USD10/mt to USD463/mt at the end of the week.
Buyers expect downward trend continue
this week as demand has worsened due to cold weather and warehouses are full of
cheap purchased cargoes.
I-beam market stared the week hopeful.
Sizes 14,16,18 mm were USD496/mt ex-work Esfahan including VAT and some rumors
heard about rising to USD508/mt. But on Monday onward, downward trend began. It
finished the week at USD490/mt ex-work Esfahan including VAT.
Angle and channel followed the same trend
and long products future market forecasts are not optimistic. Current upward trends made them do not expect
more increases in coming two months. Ex-rate fever seems lowered and traders
are not eager to increase inventories with expensive prices.
Flat Products
HRC 2 mm thickness
started week 50th at USD584/mt on truck in Anzali including 9% VAT
and custom duties. Downward trend started from Monday and finished the week at
USD579/mt.
Demand was low and
Mobarakeh Steel co offer price at IME reached USD584/mt ex-work Esfahan including
VAT.
Imported material from
Kazakhstan is still unavailable, but MMk price is EUR480-490/mt cfr Iranian
ports. Shipment would be within next 2 months. Domestic supply from Mobarakeh
Steel co is also limited, though; some market participants expect improvement
in coming 20 days.
HRC thickness 2.5-6 mm
was in lack of demand and prices dropped by USD2.5mt. Potential buyers could
get more discounts. HRP thickness 8-40 mm was down by USD2.5-8/mt.
CRC market was quiet and prices
dropped by average USD10/mt. Demand level is low and market participants believe
CRC price has reached the peak. Kazakh origin CRC is still unavailable, but MMK
origin CRC is USD520-530/mt cfr Iranian ports. Finished cost price for this
imported CRC has no significant difference with domestic available prices.
Therefore, importers are not interested in buying.
HDG market was stable with demand
level still limited.
Ex-rate:
In open market: Rials 39.350 /1USD
19 Dec 2016
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Iran Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home