Billet
Billet price was almost
stable during last week in Iran. Domestic leader Khouzestan Steel co origin
billet size 150 mm was unchanged at USD 374 /mt ex-work including 9% VAT. Size
125 mm from different producers also stayed at USD 360- 366 /mt ex-work
including VAT.
But there are rumors in
the market about possible improvements in Iran billet market. Two views about
billet market future trend are as below:
First view says billet
price may rise a little as DRI and Pellet price has improved currently. These
two products are very active in export market at the moment. Pellet price has
increased by around USD 11/mt to USD 96 /mt compared to 3 months ago. DRI price
also has increased by USD 11 /mt compared to a month ago to USD 192 /mt due to
limited shipment.
Second view believed
billet price will stay stable and unchanged and have 3 reasons for it
including:
1- Government policy
won’t let billet price improve.
2- Last purchased billet
cargoes mostly from Khouzestan Steel co is available in the market at USD 371-374
/mt ex-work including VAT.
3- Long products price
has reached the bottom and its demand is much limited. Besides its demand won’t
improve in The Holly month of Ramadan.
Market participants
generally believe billet would stay unchanged at least till market available
inventory would support current demand level.
Long products
Long products market
didn’t change significantly during last week in Iran. Generally, market trend
was downward. Average price of debar diameter 14-25 mm in Esfahan market changed
from USD 430 /mt to USD 426/mt ex-work including 9% VAT. In Ahwaz market average
price of debar diameter 14-25 mm declined by USD 4 /mt to USD 409/mt ex-work
including 9% VAT.
I-beam was the only long
products with upward trend as sizes 14, 16 & 18 mm increased by USD 3 /mt
to USD 505/mt ex-work Esfahan including 9% VAT. Besides supply level of size 20
mm has been limited.
Angle and channel were
also stable during last week.
Long products market
sentiment is quiet and would stay almost unchanged during Holly month of Ramadan
and its Holidays ( 27 May- 30 Jun).
Flat Products
HRC 2 mm thickness
experienced around USD 8/ mt decline during last week in Iran as reached USD 569
/mt on truck in Anzali including 9% VAT and custom duties for CIS products.
Chinese material was stable at USD 569 /mt on truck in BIK port including 9%
VAT and custom duties.
Thickness 2.5-15 mm
Mobarakeh steel co origin improved by just USD 1.3 /mt to USD 584 /mt ex-work
including VAT. The reason behind improvement was limited supply level for some
products.
HRP thickness 8- 40 mm
from Oxin co change from USD597 /mt to USD 582 /mt ex-work including VAT.
Kavian co HRP also dropped by USD11 /mt to USD 566 /mt by end of the week due
to lack of demand. There are some rumors that limited supply level especially
from Oxin co prices may rise. But it’s unlikely that market have any response
against possible upward trend. Future sentiment is negative.
CRC market was quiet but supply level
from domestic and import market is almost reasonable. Import level has been
around 52,000 tones during last 2 months and Mobarakeh steel Co products are
available in different sizes as before. Some sizes are in limited supply level
but lack of demand didn’t let prices improve. Generally, CRC market would be
slowly downward in coming weeks.
HDG market was unchanged and quiet during
last week in Iran.
Ex-rate:
In free market: Rials 37.430 /1USD
28h May
2017
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Iran
Steel Service Center
IFNAA
News
Agency
http://www.ifnaa.ir/en/home