Billet
Billet
market was quiet during last week in Iran. Last Saturday billet size 125 mm was
USD345-347/mt and size 150 mm was USD350-352/mt ex-work including 9% VAT. Cold
weather and lack of demand made prices downward. By Monday some market
participants expected improvements in debar and I-beam sale price at IME( Iran
Mercantile Exchange). This news helped billet size 150 mm transactions increase
and price improves to USD357/mt ex-work including 9% VAT. By end of the week
market became quiet again and price was back to USD352-355/mt.
Global markets were in Holiday
mood and inactive, therefore, Iranian big suppliers of billet which export their
billet were absent. If downward trend in global iron ore market continues, may
affect Iran domestic market in coming month. Some market insiders expect more
activity in billet market as cheap inventory of long products has declined.
Generally, experts mostly believe billet market in Iran has peaked and won’t
meet higher prices in near future.
Long
Products
Long products were downward. Debar diameter
14-25 experienced USD6/mt decline to finish the week at USD447/mt ex-work
Esfahan including VAT. I-beam size 14-18 mm also dropped by USD2/mt to
USD484/mt ex-work Esfahan including VAT.
Lack of demand due to cold weather and
availability of cheap purchased inventories in domestic market, made long
products downward during last week of December. Shortage of demand is expected
to continue in coming weeks.
Flat
Products
HRC 2 mm thickness was downward during last
week. It was USD561/mt on truck in Anzali port including 9% VAT and custom
duty. It was rumored that custom duty for the material has declined from 20% to
10%, this made sellers eager to reduce inventory. Then with ex-rate upward
trend, market became stable till end of the week. Importers are waiting for
final announcement of custom office about import duty. Some insiders believe it
won’t change as ex-rate has changed currently. In coming 2 weeks, HRC market
trend would be clear. Market participants prefer working cautiously till a
clear trend appears.
Price of HRC thickness 2.5-6 mm declined by USD2.5-7.5/mt due to
lack of demand. Sizes 8-15 mm were up by USD7.5/mt because of limited import
material. Size 15-40 mm had a stable market, but sellers were ready to give
discount to real buyers.
CRC market was quiet during last week in Iran. Prices were ready to
decline, but ex-rate fluctuations didn’t let it happen. Ports inventory level
is low but demand is also scarce. Difference between seller’s offer price and
buyer’s requested inquiry price has declined to USD12.5/mt.
HDG market was also calm despite limited supply level. Some sizes
are not available.
Ex-rate:
In free market: Rials 39.720 /1USD
31 Dec 2016
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Iran Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home