Billet
Iran billet market was upward during week 30th. Billet
size 150 mm started the week at USD 462 /mt ex-work including 9% VAT on
Saturday. Size 125 mm was also USD 459 /mt. Lack of demand made price drop by
USD 3 /mt on Sunday morning. At the same day, Khouzestan steel co sold its
billet at IME ( Iran Mercantile Exchange) at USD 481 /mt ex-work including 9%
VAT ( USD 442/mt as base price). This transaction made retail market surge
upward as billet size 150 mm reached USD 472 /mt ex-work including VAT till
Tuesday. Then became downward again and dropped by USD 20 /mt. Finally, it
ended the week at USD 464 /mt.
Global shortage of electrode for EAFs which is also a serious
problem in Iran steel industry too, will affect at least 30% of Iran domestic
billet production. Besides, higher export level has made domestic supply level
decline.
Long Products
Average price of debar diameter 14-25 mm started last week at USD 522
/mt ex-work Ahwaz including 9% VAT and USD 535.5 /mt ex-work Esfahan including
VAT. Average price of I-beam size 14-18 was also USD 582 /mt ex-work Esfahan
last Saturday. High inventory level at warehouses affected market sentiment and
made prices downward. When billet base price at IME reached USD 481 /mt on
Sunday, long products resisted against downward trend. By Monday, Esfahan Steel
co sold its debar & I-beam basket at base price of USD 498 /mt ( USD 544
/mt after VAT and other related costs). The deal satisfied just 30% of demand
level. Afterward, one of its subsidiaries offered at USD 551 /mt base price and
made market sentiment upward. Other long products were also upward, but lack of
demand has made supply level limited.
Debar diameter 14-25 mm finished the week at USD 530 /mt ex-work
Ahwaz and USD 540 /mt ex-work Esfahan.
H-beam size 14-18 was also USD 590 /mt ex-work Esfahan.
Flat Products
HRC 2 mm thickness was USD 698 /mt on truck in
Anzali including VAT and custom duties by beginning of the week, then dropped
by USD 13 /mt till Monday and finally finished the week at same price as Saturday.
Limited supply level made price upward. Import level has dropped significantly
as foreign sellers avoid supplying at high quantity to Iran. Import level has
dropped by 53% during last Iranian month to 31,000 mt. current offers have
reached USD 530/mt cfr Iranian ports, but available inventories in the market
has been purchased at lower than USD 500 /mt cfr.
In domestic market, price of Mobarakeh Steel
co products thickness 2.5-15 mm dropped by USD 13 /mt to USD 614 /mt ex-work
including VAT.
Kavian steel co HRP product was USD 622
/mt ex-work including VAT on Saturday and finished the week at USD 598 /mt. Oxin
co product also dropped by USD 13 /mt to USD 606 /mt by end of the week due to
lack of demand. Market participants expect slab price follow billet upward
trend at IME and increase by USD 26 /mt at least. Besides, shortage of demand
and low purchased inventories has made market stopped.
CRC market was downward despite
expectation of stability. Market participants mostly believe CRC price has
reached bottom.
HDG market was quiet during last week in Iran and
some sizes experienced around USD 8 /mt decline.
Ex-rate:
In free market: Rials 38,120 /1USD
31st July 2017
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Iran Steel Service Center
IFNAA News &
Analysis
http://www.ifnaa.ir/en/hom