Billet
Iran domestic billet market started week 33
with size 150 mm at USD 534 /mt and size 125 mm at USD 529 /mt ex-work
including 9% VAT. Market was confused as long products market also quiet. By
Monday, market leader Khouzestan Steel co offered its billet at base price of
USD 557 /mt ex-work excluding VAT at IME ( Iran Mercantile Exchange) which
means around USD 44 /mt rise for the base price. This policy made billet retail
market also upward by Tuesday onward. Besides, market insiders were confused as
didn’t believe domestic market would absorb such a rise, but higher global
price was a good justify for sellers. All market participants were scanning IME
trend and finally on Wednesday 18,000 tones of billet was sold at USD 557 /mr
base price at IME. Market leader Khouzestan Steel co is trying to control
market. Besides, upward trend in ex-rate also influenced billet price during
last week.
Finally, by end of the week average price of
billet size 150 mm reached USD 583 /mt and size 125 mm was USD 578 /mt ex-work
including 9% VAT.
Long Products
Average price of debar diameter 14-25 mm started week 33 at USD 632
/mt ex-work Dezfoul including 9% VAT on Saturday and USD 624.5 /mt ex-work
Esfahan including AVT. Average price of I-beam size 14-18 was USD 729/mt ex-work
Esfahan including AVT. Long products market was quiet and downward trend
expected, therefore on Saturday and Sunday prices experienced USD 8 /mt daily decline.
Market leader made prices up to avoid more declines and was successful as
prices improved by USD 5 /mt. By rising billet price at IME, long products
market improvements continued as till Wednesday prices were up by USD 15 /mt.
Re- rollers increased prices but gave good discounts to potential buyers, this
policy let them increase sales level. Generally domestic demand for long
products is limited at the moment due to low activity of infrastructure
projects as producers are working with 30-40% of their capacities.
Flat Products
HRC 2 mm thickness started week 33 in
Iran import market at USD 751 /mt on truck in Anzali port including 9% VAT and
custom duty. Lack of demand made price downward as on Wednesday it reached USD 733
/mt on truck in Anzali port including 9% VAT and custom duty.
In domestic market, for thickness 2.5-15
mm, Mobarakeh Steel co product was averagely USD 673 /mt ex-work including VAT
on last Saturday and stayed almost unchanged till end of the week. Kavian co
product thickness 10-30 mm dropped from USD 650 /mt to USD 645 /mt ex-work
including VAT by Wednesday. The most downward trend in flat products last week
belonged to Oxin co prices. Its HRP size 12-60 mm started the week at average
USD 658 /mt ex-work including VAT and finished the week at USD 635 /mt . The downward trend is expected to continue
in coming weeks as market inventory level is high especially for Oxin co
products when demand level is not significant.
CRC market started week 33 with downward
trend. This trend continue till Tuesday, then prices were up a little. Average
price of import and domestic CRC thickness 0.40-2.5 mm was USD 832 /mt by end
of the week which declined by USD 8 /mt during the week.
HDG market was also upward due to limited
supply level for some sizes. Average price of HDG thickness 0.45-1.5 mm offered
by Kashan Steel co increased from USD 924.5 /mt on Saturday to USD 938 /mt
ex-work including VAT on Wednesday.
Ex-rate:
In free market: Rials 38,590 /1USD
28th Aug 2017
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Iran Steel Service Center
IFNAA News &
Analysis
http://www.ifnaa.ir/en/hom