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Billet
Billet market experienced some
improvements during last week in Iran. Domestic billet size 150 mm increased
by USD 5 /mt to USD 366 /mt ex-work including 9% VAT. Size 125 mm also rose
by USD 3/mt to USD 358/mt ex-work including 9% VAT.
Generally, Iran billet market is
confused. Tow opposite factors are affecting market trend. From one side,
supply level especially from two market leaders has declined which make
prices upward. On the other side, there are factors which avoid prices from
any significant improvement including:
1- Long products market quietness and
depression
2- Rumors in the market about possible
decrease of base price of billet at IME ( Iran Mercantile Exchange)
Besides, last week market was affected
by political issues as we had presidential election on Friday 19th May. Last
week market participants preferred staying outside of the market till end of
presidential election. Market players expect a clearer market trend in coming
days.
Long products
Debar price was almost unchanged during
last week in Iran domestic market. Demand is limited and mills margin has hit
the bottom, therefore there is no space for market change. Prices would
change if billet price change or demand level improves.
Market players expect last two months
absent demand come to the market after presidential election.
Other long products like angle and
channel were also stable. Just angle size 3-6 mm and channel size 8-14 mm
were down by USD 5 /mt. In I-beam
market, efforts for increasing prices didn’t work as buyers were out of
market.
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Flat products
HRC 2 mm thickness started week 20th
at USD 571 /mt on truck in Anzali including 9% VAT and custom duty, but dropped
by USD 5 /mt till Tuesday. Number of sellers declined and suppliers tried
rising prices as it reached USD 574 /mt on truck in Anzali and Chinese products
was USD 574 /mt on truck at Imam Khomeini Port. By Wednesday onward, supply
level decreased more.
Mobarakeh steel co origin thickness
2.5-15 mm was USD 569-574 /mt ex-work Esfahan including VAT last Saturday. By
Sunday, limited supply made prices upward to USD 579-582 /mt. Most rises were
seen in thicknesses 8,10,12 mm. Prices were also up ex-warehouses in Tehran.
Price were down for Oxin and Kavian Steel
co HRP, as supply level has been up currently. Kavian co HRP dropped by USD 5
/mt to USD 574 /mt ex-work including VAT. Oxin co HRP 15-40 mm was unchanged at
USD 595 /mt. Oxin co is trying to increase its prices but lack of demand and
Kavian co competitive prices won’t let it happen.
CRC market was quiet as market players
were expecting downward trend. Import level has increased currently from
average monthly level of 30,000mt during last Iranian year to 80,000 mt per
month currently. Dumped inventories at Aktau port has come to Iran when Iran
domestic market itself is full of
domestic leader Mobarakeh Steel co products. Besides, demand level is scarce
and prices would be downward if current condition continues.
HDG market was stable and is unlikely to
fluctuate in coming days even if CRC price declines. Zinc supply level as decreased, which won’t
let HDG price decline significantly.
Ex-rate:
In free market: Rials 37.450 /1USD
20th May 2017
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Iran Steel Service Center
IFNAA News
Agency
http://www.ifnaa.ir/en/home