Billet
Billet was downward during first week of 2017 in Iran. Billet size
125 mm was USD 355/mt and size 150 mm was USD357-360/mt ex-work including 9% VAT by beginning of the
week. They finished the week respectively at USD 334-338/mt and USD 342/mt.
The reason behind these drops was significant decline of long
products demand. Cold weather and ex-rate market confusion made steel traders
mostly quiet and prices downward. Any improvement in demand seems unlikely in
near future but billet price is near its bottom level in current Iranian year.
Considering USD324/mt ex-work including VAT as average minimum price for billet
size 150 mm during last 9 months, billet price may reach its bottom in coming
week in Iran as prices are downward.
It’s worth mentioning that this downward trend in prices won’t lead
to higher market activity, as current declines in prices has not finished in any
demand improvement.
Long Products
Long products prices
were downward. Average price of debar diameter 14-25 mm was USD 426/mt ex-work
Esfahan including VAT on Saturday and dropped by USD 8/mt till Wednesday.
I-beam size 14,16,18 mm also dropped by USD3/mt to finished the week at USD 479/mt
ex-work Esfahan including VAT. Angle and channel were also down by USD 8-13/mt.
Long products market is being controlled
by market leader Esfahan Steel co strictly.
Highest monthly supply level of the mill in
current Iranian year has been 121,000 tones 4 months ago (22 Aug-21 Sep). After
that it started rising prices, but sale level didn’t improve. During last 3
months prices were upward but sale level of Esfahan Steel co became downward. Price
has increased by 32% during the time but sales level declined by more than 50%.
It is clear that Esfahan Steel Co income has declined despite improvement in
prices.
Flat Products
HRC 2 mm thickness
was down by USD 13/mt to USD 560/mt on truck in Anzali including VAT and custom
duty. Market depression and lower ex-rate made HRC price downward. Market
participants are confused. Currently it was heard that custom duty would
decline by half to 10%, but formal instruction has not been announced yet.
Besides, there is no interest in buying.
CIS offer price is
USD550/mt cfr Iran and would cost around USD633/mt for importers after custom
duty and VAT. Considering current available price in the market, nobody is
eager to buy new import cargo.
Thicknesses 2.5-6 mm
were almost stable due to limited supply. Thickness 6-15 mm were down by USD 3-8/mt
as demand is low. HRP thickness higher than 15 mm dropped by USD 5/mt with
supply level strictly limited.
CRC price dropped by
up to USD 13/mt during last week in Iran. CRC supply level has been downward surrently.
During last 4 months, domestic supply at IME( Iran Mercantile Exchange) rose by
just 5,000 tones. Import level has been down by 51,000 tones during the same
time. Higher ex-rate made CRC price upward during last 2 months, but
consumption level has been declining significantly. CRC is raw material for
many industries and downward trend in its consumption means downtrend in
industrial manufacturing.
Besides, domestic
CRC price is not in line with global markets. Minimum offer price from CIS is
USD580/mt cfr Iran. Import cost price would be USD684/mt including custom duty
and VAT. But average sale price in domestic market has been USD671/mt ex-work
including VAT currently.
HDG market was
stable. Lower production justified lack of demand and prices stayed unchanged.
Ex-rate:
In free market: Rials 39.480 /1USD
07 Jan 2017
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Iran Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home