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Iran steel market Trend in Week 06th , 2017

Billet

After a gathering of producers last week at Steel Producers Association, billet mills decided to stop offering from Sunday to review market sentiment better as debar price had increased by USD 26 /mt without any logical reason. But by Tuesday billet mills started offering despite avoidance of worried buyers from any new purchase. This made market downward till end of the week. Billet size 150 mm started the week at USD 313 – 316 /mt ex-work including 9% VAT, it reached USD 332 /mt by middle of the week and finished at USD 321 – 326 /mt. For size 125 mm, price was USD 308-311 /mt at beginning of week 06th, then rose to USD 329 /mt and finally finished the week down at  USD 317-321 /mt ex-work including 9% VAT.

 

Long Products

Long products market didn’t experience a healthy week. Esfahan Steel co debar diameter 14-25 mm started the week at USD 410 /mt ex-work Esfahan including VAT, but customers were requesting not more than USD 400 /mt .I-beam size 14-18 mm was USD 478 /mt ex-work Esfahan including VAT with no potential buyer in the market. The mill's pricing policy made prices rise by USD 5 /mt, but by Wednesday onward downward trend appeared. Average price of debar reached USD 418 /mt without any real demand available.  Market insiders expect such pricing policies continue in short term.

Market's main problem at the moment is not demand but lack of liquidity which is pressuring mills. Mills with liquidity shortage would destroy market discipline and may affect more market participants negatively.  

 

Flat Products

2 mm thickness HRC was USD 564 /mt on truck in Anzali including 9% VAT and custom duty by last Saturday, till Monday improved by USD 5 /mt but again started declining and moved back to USD 567 /mt by end of the week. Market insiders are confused why HRC price has declined in Iran despite rise of ex-rate compared to 6 months ago and improvement in global prices.

Price of HRC thickness 2-6 mm increased by average USD 8 /mt due to supply shortage. Some sizes are almost unavailable such as 12 mm which started from previous weeks and sizes 6 mm and 10 mm which are in shortage from last week.

HRP thickness 15 mm or higher were stable in price by week 6th, but supply level was limited. Some sellers stopped offering or increased prices by USD 3-8 /mt higher by Wednesday, but there was no interest in buying.

CRC market was almost stable during the week, but finished it at USD 3 /mt higher for import cargoes. Domestic leader Mobarakeh Steel co prices stayed unchanged due to higher supply level for some sizes. Importers are holding waiting policy at the moment.

HDG market was quiet. Supply and demand level both are in shortage. Zinc price has increased and has made HDG production illogical. Besides, there is no demand to give producers any motivation.

Ex-rate:
In free market:  Rials 38.290 /1USD

11 Feb  2017

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Iran Steel Service Center

IFNAA News Agency                                                 

http://www.ifnaa.ir/en/home

Feb 12, 2017 09:38
Number of visit : 912

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