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Billet
Billet market was downward
during last week in Iran. Size 150 mm started the week at USD 364-367/mt
ex-work including 9% VAT, then dropped to USD 354-362/mt. Billet size 125 mm
was also downward from USD 356- 359/mt to USD 354-356 /mt ex-work including
9% VAT. Though, prices were down by average USD 4-5 /mt.
Long products market was downward
and quiet, which has affected billet market trend negatively to reach the bottom.
Besides, billet price has been also downward in global markets, which
strengthened expectation of the same trend in Iran market. When global prices are downward, Iran
billet export demand would decline if not competitive.
Last week some rumors were hear
that one of big billet producers want to decrease its base price at IME (
Iran Mercantile Exchange). This news also made billet buyers more cautious
and stayed back. Some billet parcels were also offered in the market at last
cheap purchased prices. Therefore, we can expect this downward trend continue
in near future.
If billet base price decline at
IME, It can made spot prices down by up to USD 13/mt. Otherwise, downward trend won’t be more than
last week as DRI price as a raw material for billet production has been
stable currently.
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Long products
Long products were downward during week
19th in Iran as demand side was silent. Prices were generally down
by USD 8-11 /mt. Just Esfahan Steel Co prices declined less as the mill resisted
against downward trend.
Average price of debar diameter 14-25
mm dropped by USD 5 /mt in Esfahan to
USD 423 /mt ex-work including VAT. Average price of I-beam size 14-18 mm also
dropped by USD 2.5/mt to USD 500/mt ex-work including VAT. Esfahan Steel co
tried fixing its price of I-beam by middle of the week but lack of demand was
stronger.
Angle and channel experienced up to USD 13/mt
decrease by start of the week, then mills resisted against more declines.
As billet price is also downward, long
products would continue declining in coming days. Besides, next Friday we have
presidential election which has made markets quieter. Generally long products market outlook is not
positive in Iran as global prices has been downward recently.
Flat products
HRC 2 mm thickness
demand level was low during last week in Iran. It was down by USD 8 /mt in
Anzali port to reach USD 569 /mt on truck in Anzali including 9% VAT and custom
duties. At Imam Khomeini port ( BIK) it
was down by the same to USD 564/mt on truck including VAT. Import offers were
down by USD30/mt to USD430/mt cfr Anzali.
Domestic HRC
thickness 2.5-15 mm from Mobarakeh Steel co also dropped by USD 13/mt to USD
569/mt ex-work including VAT by last Wednesday.
HRP thickness 15-40
mm from Oxin Steel co dropped by USD 8/mt to USD 593/mt ex-work including VAT.
More declines were seen for thickness 20, 25 and 30 mm, but size 40 mm was
unchanged due to supply shortage. Kavian Steel co HRP 8-40 mm thickness also
dropped by average USD 8/mt to USD 585/mt
ex-work including VAT and is expected to continue declining in near
future.
Prices are downward in global markets.
Besides, Holy Month of Ramadan is near and demand level would decrease in Iran
and other markets too.
CRC market was quiet and downward. CIS
origin CRC dropped by USD30/mt to USD510/mt cfr Northern ports. Import level
generally has declined and Mobarakeh Steel co products supply level has
improved in domestic market compared to a year ago. But it’s noteworthy that
demand level also declined and has made supply- demand gap wider. Therefore,
downward trend will continue unless Mobarakeh Steel co increase export level
and lower domestic supply which needs at least 2 months’ time.
HDG was downward by start of the
week and finished it USD 11 /mt lower. Some sizes are in supply shortage which
may rise in prices in coming days, but generally HDG market is downward like
other steel products.
Ex-rate:
In free market: Rials 37.600 /1USD
14th May 2017
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Iran Steel Service Center
IFNAA News
Agency
http://www.ifnaa.ir/en/home