Billet
Steel billet price improved significantly during last week in Iran
domestic market but demand was still downward. Billet size 150 mm was offered
up to USD 410 /mt ex-work including 9% VAT, but finally sold at USD 402 /mt. Actually
it was between USD 402 – 408 /mt. Billet
size 125 mm was also offered at USD 383 – 391 /mt ex-work including 9% VAT.
The only reason behind billet price surge was limited DRI supply in Iran. DRI price passed USD 197 /mt
during the week in Iran. DRI producers are active in export market, besides hot
weather has made some mills cut production or start their annual summer repairs.
Therefore, domestic supply level has dropped significantly. Some cargoes were
offered at USD 190 - 192 /mt but was in limited quantity and didn’t affect market
trend. Generally, billet price has peaked and long products demand level has
dropped seriously, though, billet upward trend stopped.
By last Wednesday, Esfahan Steel co sold 82,000 of
its long products at IME, which helped long products market become calm and
affect billet market too. There are some talks that Chadormalou Mining Co would
start its summer stoppage next week after Ramadan Holidays. As the mill is main
supplier of pellet to DRI producers, market would face other fluctuations in
coming weeks. Iran DRI production capacity will rise to around 25 million mt
till end of the year from current 17 million mt. But market insiders believe
just higher DRI production won’t help and market need to find a balance between
export and domestic market.
Long Products
Debar diameter 14-25 mm improved by USD 16 /mt during last week to USD 438
/mt ex-work Ahwaz including 9%VAT. Esfahan origin material increased by USD 4 /mt to USD 446 /mt ex-work including VAT.
Prices fluctuations started by last Saturday with around USD 3 /mt increase. By
end of the week for some sizes price had improved by USD 21 /mt. By Wednesday
Esfahan Steel co declined its prices by USD 3 /mt, but after many increases
during the week. Actually the mill had sold around 82,000 mt of its long
products including debar, I-beam and channel before the decline.
Angle and channel also experienced the same trend as debar during week
25th. From Saturday till Tuesday prices improved up to USD 17 /mt by
average and finished the week with USD 5 /mt decline. In coming days Iran steel
market would be unchanged due to religious Holidays of Ramadan ending. Market
need to be a little calm after such surges. Besides, due to limited DRI supply
and possible rise of Esfahan Steel Co base prices at IME, market still have
space for more improvements.
Flat Products
HRC 2 mm thickness started week 25th upward. By Saturday
morning it improved by USD 5 /mt to USD 577/mt on truck in Anzali port
including 9% VAT and custom duty. At the same working day it reached USD 592
/mt. Main reason behind this surge in price was limited supply of MMK. Besides,
domestic mills in north and south of the country also declined offer level in
the market. Generally demand was limited too.
Market leader Mobarakeh Steel co products thicknesses 2.5 – 15 mm were
also upward. It was up by USD 13 /mt for some sizes till end of the week. HRP
thickness higher than 15 mm, was almost unchanged in price despite lower supply
level from Oxin co. Limited demand level and also enough supply from Kavian
Steel Co made plate market stable.
CRC price improved by around USD 5 /mt for some sizes by middle of the
week due to rumors about some limitations for releasing imported
cargo from custom office. Market is so much quiet that such rumors won’t help
it improve. Besides, some market participants were talking about possible USD
10-20 /mt decline of CRC price in global markets, which has made sellers eager
to get rid of inventories.
HDG market experienced a quiet week and prices
stayed unmoved.
Ex-rate:
In free market: Rials 37.570 /1USD
25th
June 2017
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Iran Steel Service Center
IFNAA News & Analysis
http://www.ifnaa.ir/en/home