Billet
Despite market closure due to Holidays (last Sunday and Monday) and the
related market quietness, billet price improved during last week in Iran. By
Tuesday after market opened, domestic billet size 150 mm was heard at USD 388
/mt ex-work including 9% VAT, but no deal was done at this price. By Wednesday
market sentiment was calmed. Khorosan Steel co offered its billet at USD 380
/mt ex-work including VAT, but still no buying interest due to market
uncertainty and also previous delays of the company in delivery of cargo.
By end of the week billet size 150 mm improved again to USD 380 – 388
/mt ex-work including VAT. Size 125 mm was also USD 369-372 /mt ex-work.
Market insiders believe main reason behind billet price increase was
limited supply of DRI and also some mills pricing policy. DRI was offered at
USD 187-191 /mt by end of last week. DRI market will experience fluctuations in
near future as pellet supply level is expected to face some interruptions.
At the moment market trend is affected by Ramadan limited activities,
therefore we should wait till end of the month for a clear market trend.
Long Products
Last Tuesday as billet price surged suddenly and its supply level was
limited, long products market being affected, experienced up to USD 13 /mt
increase. One of market leaders stopped offering and other mills increased
their prices. The next day that sudden surge disappeared and prices moved back
by up to USD 5 /mt.
Angle and channel were up by USD 5 /mt averagely. I-beam was in supply
shortage and improved especially for sizes 20,22 and 24 mm. Market had expected
some improvements after the long weekend but this increase rate was more than expectations.
The main reason behind fluctuations in long
products market was billet price rise and its limited supply. Billet producers
have declined their raw materials inventory level due to market sadness.
Therefore, any tiny change in raw materials markets such as scrap or DRI,
affects billet market significantly. DRI price is around USD 191 /mt at the
moment and is expected to reach USD 198 /mt or higher, therefore billet market
was affected and changed long products market trend too.
Flat Products
HRC 2 mm thickness was offered at USD 570 /mt on truck in Anzali port
and USD 562 /mt on truck in Imam Khomeini port including 9% VAT and custom duty
by Tuesday after Holidays (Sunday and Monday). Market was not active as some
sellers were out of market, therefore supply level decreased and made import
prices in Anzali port up by USD 3 /mt.
In domestic market, Mobarakeh Steel co products thickness under 15 mm
stayed unchanged as market had no activity. For thickness more than 15 mm,
Kavian co HRP was being supplied regularly made market stable. Oxin co is
trying to affect market pricing but regular supply of Kavian co and market
sadness in general didn’t let it happen.
CRC market was quiet during last week in Iran with prices stayed
unchanged.
HDG market facing with limited supply experienced USD 3 /mt improvement
for some sizes, but generally market was quiet.
Ex-rate:
In free market: Rials 37.350 /1USD
10th June 2017
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Iran Steel Service Center
IFNAA News
Agency
http://www.ifnaa.ir/en/home