Billet
Billet price was upward during last week in Iran. Billet size 150 mm (with
length 6 m) was offered by private mills last Saturday at USD 379 /mt ex-work
including 9% VAT. It started rising and by Tuesday it was USD 386 /mt. By
Wednesday, lower DRI price made billet decline by USD 3 /mt. Billet size 125 mm
started week 24th at USD370-372 /mt ex-work including 9% VAT. By
Tuesday it reached USD 380 /mt and then dropped by USD 3/mt by end of the week.
Meanwhile state companies Khouzestan and Khorasan Steel co were not
offering in domestic market. Kaveh Kish Steel co also was not successful in
offering at IME ( Iran Mercantile Exchange).
Billet price in being influenced by DRI price. DRI price started last
week at USD 198/mt base price excluding VAT and by Tuesday some deals were done
at USD192 /mt, which made billet price drop by Wednesday. But by Wednesday
afternoon DRI supply level became limited. DRI producers stopped sales as their
summer stoppage is near. Therefore, DRI supply level would be limited and
affect billet supply level directly. Though, billet market would be faced with
significant supply shortage in near future in domestic market.
Long Products
By last Saturday average price of debar diameter 14-25 mm was USD435
/mt ex-work including 9% VAT by Esfahan Steel co and USD417/mt ex-work Ahwaz
including VAT by INSIG co.
As billet price started rising and was limited in supply level, debar
price followed the same trend but debar demand level was scarce too. By
Wednesday Esfahan Steel co debar average price reached USD443 /mt and INSIG co
product was USD 425 /mt ex-work including VAT.
Esfahan Steel co I-beam size 14,16,18 mm improved by USD13/mt to USD522.5
/mt ex-work including VAT by end of the week due to the mill marketing policy. Other
mills such as Yazd rolling mill also increased prices.
Other long products experienced the same and were upward. Angle price
increased by USD16 /mt and channel price also rose by USD 11/mt. But there was
no demand in the market. Increasing cost price is the reason behind higher long
products price not real demand. Summer time market sadness and also Ramadan
month has affected demand seriously. Raw materials prices have increased due to
higher export level and reduced domestic supply.
Flat Products
Imported HRC 2 mm thickness was offered at USD576 /mt on truck in Anzali
port including 9% VAT and custom duty by last Saturday and stayed almost
unchanged during the week. Chinese material offers were limited in BIK port for
width 1m, but width 1.25 m was available at USD 571 /mt on truck including VAT
and custom duties.
Mobarakeh Steel co was eager to rise price for thicknesses 2.5-15 mm,
but market sadness in Ramadan didn’t let it happen. Some sizes of Mobarakeh
Steel co products which has been limited currently improved by USD3-8 /mt by
last Wednesday.
Domestic HRP thickness 15 mm or higher offered by Kavian Steel co was
unchanged during last week. Oxin co was also offering HRP, but by Monday a
rumor was heard about summer closure time of the mill in near future. This made
sellers increase prices by USD5 /mt. Market is so much quiet and didn’t
response to any price changes.
Mobarakeh steel co CRC was offered in the market increasingly and made
prices downward. Prices were down by average USD3 /mt. Demand is scarce and
prices are expected to continue declining.
HDG market was stable during last week in Iran and is likely to stay at
the same trend in coming week.
Ex-rate:
In free market: Rials 37.320 /1USD
17th June 2017
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Iran Steel Service Center
IFNAA News & Analysis
http://www.ifnaa.ir/en/home