Billet
Billet price was downward during last
week in Iran. Size 150 mm started the week at USD 495 /mt and size 125 mm was
USD 487 /mt ex-work including 9% VAT. They finished the week lower at
respectively USD 487 /mt and USD 482 /mt. For size 125 mm, price of USD 474 /mt
was also heard. Generally, demand side was in waiting mood. Traders were also
just seller and were not eager to increase their inventory level.
Market was quiet, confused and waiting to
see a clear direction. Insiders believe billet price has reached bottom in Iran
domestic market and need some time to find its way.
Long products
During week 36, debar sizes 14-25 mm in Esfahan
market experienced around USD 10.5 /mt decrease to reach USD 601 /mt ex-work
including 9% VAT. Same sizes experienced around USD 19 /mt decline in Dezfool
market for Roohina Steel co products to reach USD 590 /mt ex-work including VAT.
I-beam sizes 14-18 were also downward a
little as declined by USD 2.5 /mt to USD 708 /mt ex-work Esfahan by end of the
week.
Two factors made long products prices
downward during last week in Iran domestic market. First one was lack of demand.
Real demand is still absent. Lack of liquidity and market sadness has made prices
downward.
The other factor is market sentiment.
Market is full of inventory at the moment and upward trend in prices has
stopped from more than two weeks ago. Therefore, transactions level has
declined significantly. Market participants mostly are looking to sell
inventory and increase liquidity.
Two views are forecasting future trend in
long product market. First one says as DRI price is stable, its export level
has increased and also ex-rate is rising, long products market will be upward
in coming Iranian month ( from 23 September) as lower raw materials level will
decline market inventory level.
Second view is waiting for demand from
infrastructure projects and says prices will continue declining due to lack of
new transactions and demand shortage.
Besides, some market insiders believe
Iran long products market has made a bubble in prices by 8-10 % during last 3 months
which is bursting slowly. After that market trend would be more logical. We are
in last weeks of summer holidays in Iran and market is expected to decline slowly
till next month, then higher ex-rate trend will show its consequences on
prices.
Flat Products
HRC 2 mm thickness in import market
experienced some down trends during last week in Iran as price dropped by USD 8
/mt to USD 692 /mt on truck in Anzali including 9% VAT ad custom duty. Market insiders
expect more downward trend as domestic supply from Guilan has improved.
Mobarakeh Steel co products sizes 2.5-15
mm were down from USD 660 /mt to USD 638 /mt ex-work including VAT. Lack of
demand and higher supply level at IME made downward trend easier.
HRP market was almost stable for Kavian
steel co products, mostly due to lack of demand. Oxin co products were downward
as prices were down from USD 616 /mt to USD 613 /mt ex-work including VAT.
CRC market was almost stable in prices as
its consumption season has not begun yet. Higher ex-rate would be the reason
behind higher import prices. We can say CRC is the only steel product without price
bubble at the moment in Iran and can experience upward trends in coming weeks.
HDG price was upward in both domestic and
import market. Average price of domestic market increased from USD 921 /mt to
USD 933 /mt ex-work Kashan including VAT. In import market price was also up
from USD 889 /mt to USD 898 /mt on truck including VAT and custom duty. Demand
was still low and market moved slowly.
Ex-rate:
In free market: Rials 39,000/1USD
11th Sep 2017
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Iran Steel Service Center
IFNAA News &
Analysis
http://www.ifnaa.ir/en/home