Billet
Billet market experienced heavy decline during last
week in Iran. Domestic billet size 125 mm dropped by USD 16/mt to USD 321/mt
ex-work including 9% VAT. Size 150 mm also decreased by the same to reach USD 327/mt.
Two reasons behind downward trend of billet market
are:
1- Higher supply level
Some mills had been forced to clear
their debts with giving their creditors billet drafts. These drafts holders
which have no experience in steel trading are offering the billet at any price
even with heavy losses just to get cash out of it.
Last Monday Khouzestan Steel co
sold 24,800 tones of its billet at base price of USD 372/mt excluding VAT at
IME. But seems it was a matching contract.
2- Steel market serious depression
Long products demand level is minimum. Steel mills are
ready for more discounts to improve their cash shortage.
Long Products
Long products market passed a
harsh week. Debar diameter 14-25 mm declined by USD 8 /mt to USD 405 /mt
ex-work Ahwaz including VAT. Sellers were looking for buyers. The same material
at Esfahan market dropped by USD 15/mt to USD 418 /mt ex-work including VAT
with no buyer available.
Long products market participants
are pessimistic about next quarter as some traders were offering high tonnage
parcels with 2-3 months delay in payment possible. It seems long products
market won’t improve till at least next Iranian year Presidential election ( to
be held on 19 May 2017).
Flat Products
HRC 2 mm thickness decreased by
USD 10 /mt to USD 562/mt on truck in Anzali including VAT and custom duty due
to lack of demand. CIS origin material is still USD500/mt cfr Anzali port. This
means minimum cost price for importers would be USD 627/mt including custom
duty and VAT. Import level has been declining heavily currently due to this
trend. During last 3 month import level declined from 178,000 tones to 120,000
tones. Buyers prefer buying from domestic mills as Mobarakeh Steel co domestic
supply has increased and Saba Steel Co price is near import prices. Besides,
pipe and profile demand has declined significantly.
For HRC thickness 2.5-8 mm prices
declined by up to USD 8 /mt as Mobarakeh Steel co products were available in
the market. For sizes 6-15 mm, low demand and high supply level made market
quiet. Prices dropped averagely by USD 8
/mt . For thickness higher than 15 mm, Kavian and Oxin Co products were being
offered in the market and made prices downward.
In CRC market import offer level declined but prices also dropped
by USD 3- 5/mt. Some sizes were in limited availability. Mobarakeh Steel co
products were down by USD 8/mt. Winter is traditionally good time for CRC
consumption but at the moment demand is significantly low.
HDG market was still in depressed sentiment and limited supply with
prices dropped by USD 5 /mt.
Ex-rate:
In free market: Rials 38.260 /1USD
04
Feb 2017
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Iran
Steel Service Center
IFNAA News Agency
http://www.ifnaa.ir/en/home