Billet
Billet market was stable during last week
in Iran. Prices improved a little till Monday as billet size 125 mm increased
by USD 2.5/mt to USD343/mt and size 150 mm by USD 4/mt to USD 347/mt ex-work
including VAT. But death of former president Mr. Hashemi Rafsanjani at age 82 made
market silent. Market stayed unchanged and quiet despite lack of demand.
Iranian Steel Manufacturers Association
announced new data for billet import figures which surprised some market
participants especially because most of it was from Kazakhstan. Our economic
system is not clear, therefore, import statistics can’t be judged clearly but
generally factors influencing import level would be ex-rate, payment terms, and
especial US dollar allocations to some state companies which helped them import
more billet.
According to Custom Office data,144,091 mt
billet has been imported to Iran from beginning of current Iranian year ( 20
March 2016-09 Jan 2017). Highest monthly import level had been 37,079mt ( 22
Aug-21 Sep) and lowest monthly level had been 136 mt ( 21 May- 20 Jun).
Long Products
Long products were downward during last
week in Iran. Debar diameter 14-25 mm started the week at average of USD 437/mt
ex-work Esfahan including VAT on Saturday and dropped by USD 5/mt by end of the
week. Angle and channel were also down by the same trend. I-beam size 14,16,18
mm was down by USD 5/mt. Market became closed by middle of the week with death
of Mr. Hashemi Rafsanjani. Market was quiet and Esfahan Steel co stopped
offering. This would give market some time to decline inventory level. Esfahan
Steel co is waiting for market improvement but generally demand is low and
upward movement in deals seems unlikely.
Flat Products
HRC 2 mm thickness started the week at
USD 553/mt on truck in Anzali including 9% VAT and custom duty. It finished the
week USD7.5/mt lower. Chinese product was offered at USD548/mt on truck in Imam
Khomeini Port including VAT and custom duty with no interest in buying. MMK
origin HRC 2 mm was USD470/mt cfr Anzali port. It would costs USD581/mt on
truck including 20% custom duty and 9% VAT for importers. The gap between Iran
domestic market and global markets has made import level decline during current
months. Behind import downward trend there are factors. One of them is that
market is quiet and made buyers decline purchase level. Secondly, domestic
supply level has increased which affected import level.
HRC thickness 2.5-6 mm was down by USD2.5/mt, with
demand level scarce. Thickness 6-15 mm were in limited supply, but also faced
with lack of demand. HRP thickness 15 mm or higher were down by average USD7.5/mt
despite significant limited availability for some sizes as demand is scarce.
CRC price dropped by USD7.5/mt. Demand was so much down
and prices declined despite limited availability for some sizes.
Lack of demand and limited supply level
still stayed in HDG market and made it quiet.
Ex-rate:
In free market: Rials 39.610 /1USD
14 Jan 2017
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Iran Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home