Billet
Billet market was
upward during last week in Iran. Billet size 150 mm rose to USD 574 /mt and
size 125 mm to USD 569 /mt ex-work including 9% VAT by last Wednesday. By beginning
of the week size 150 mm was USD 524.5 /mt and size 125 was USD 519 /mt.
Khouzestan Steel co
billet base price at IME increased from USD 498 /mt to USD 520 /mt ex-work
excluding VAT due to low supply and high demand level. Finished price at IME
reached USD 567 /mt ex-work including VAT.
DRI price also started
rising and finished the week at USD 275 /mt ex-work excluding VAT compared to
USD 236-244 /mt by beginning of the week.
At the moment hot weather,
limited pellet supply and also higher export level are affecting billet price
level.
1-Weather: Hot
weather and limited electricity supply level to mills has forced them cut
production or start annual maintenance.
2-Pellet: Base price
of pellet has reached USD 105 /mt and made DRI price rise. Iron ore concentrate
price has also passed USD 79 /mt ex-work excluding VAT.
3- Export: Improved
market in Fareast has made export level of raw materials and semi products increase
from Iran.
Billet producers has
declined production level in summer time but long products market is active and
mills are in need of billet, therefore upward trend in billet market is
expected to continue for a while.
Long
Products
Debar diameter 14-25 mm started week 32 in Iran at USD 568 /mt ex-work
Ahwaz including 9% VAT and USD 577 /mt
ex-work Esfahan. I-beam was not offered and angle and channel were up by
USD 8 compared to previous week. On Monday and Tuesday upward trend in prices
became faster. Debar price was upward daily by USD 10/mt, USD 13 /mt and USD 26/mt
from Monday to Wednesday respectively. I-beam was also upward. Angle and
channel also were upward by USD 13/mt, USD 16/mt and USD 26/mt during this time
period.
Higher billet price was the only reason behind upward trend of long
products.
By Wednesday, debar price was not clear in Ahwaz market as sellers were
confused. Roohina Steel co was offering its debar at USD 621 /mt ex-work
Dezfool including VAT. Esfahan origin was also USD 621.5 /mt ex-work including
VAT. Significant rises have made market participants
worried in long products market.
Flat
Products
HRC 2 mm thickness
started week 32 at USD 729 /mt on truck in Anzali including 9% VAT and custom duty
on last Sunday. By Monday it rose to USD 747 /mt, then by offering HRC by
Mobarakeh Steel co at IME market participants stayed back. Mobarakeh Steel co sold
CIS origin HRC at IME and made price upward again. Till Wednesday it reached
USD 750 /mt.
CIS origin HRC
availability has been scarce in Iran. Higher demand in global markets has made
CIS suppliers less eager to offer to Iranians.
Thickness 2.5-15 mm
from Mobarakeh Steel co was offered at unchanged prices. Oxin co HRP products price
reduced by USD 3 /mt and Kavian co was offering all sizes in the market.
Downward trend continues till end of the week to reach USD 13 /mt. At the
moment HRC price is equal to rebar when should be at least 10% higher. Low slab
price is the reason behind these prices. Market participants expect slab price
rise by at least USD 26 /mt to be near billet price at IME. HRC higher seasonal
demand will start from around next month and market is ready for possible
rises.
CRC market was quiet
and stable till Wednesday which price rose by USD 8 /mt by average. HDG market
was also stable during week 32.
Ex-rate:
In free market: Rials 38,130 /1USD
14th
Aug 2017
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Iran
Steel Service Center
IFNAA
News & Analysis
http://www.ifnaa.ir/en/hom