Billet
Billet market was downward during last
week in Iran. By Sunday average price of billet size 150 mm was USD 485 /mt and
size 125 mm was USD 480 /mt ex-work including 9% VAT. By end of the week they
were respectively USD 482 and USD 467 /mt. Some participants were talking about
around USD 5 /mt lower. Billet producers mostly have high inventory level and
were not succeeded in deals during last week due to sudden drops in long
products prices and market sadness which affected billet demand. Khouzestan
steel co didn’t change its billet price at IME as size 150 mm base price for length
of 12 m was USD 552 /mt ex-work excluding VAT and length of under 12 m was USD 525
/mt excluding VAT. Khouzestan steel co billet offer at IME is working like an
index at the moment, if it drops, price of DRI, pellet and iron ore concentrate
and fine would drop too. Therefore, it seems unlikely that the mill would be allowed
to decline its prices. Besides, long products market is downward and expect
billet price to follow this trend.
Long products
Long products market
experienced a quiet and depressed week. Prices were downward with lack of
demand in the market. Mills were ready to give USD 8 /mt discount by first days
of the week but as billet offer at IME didn’t finish in deal, downward trend of
long products became faster and wider. A mill was ready for USD 18 /mt discount
despite stable offer price. This trend continued till end of the week. Debar
average price was USD 577 /mt ex-work including VAT by end of the week. Based
on current billet price, debar market has space for more USD 26 /mt decline.
More decline would made debar production not affordable. Market participants
expect downward trend in debar market during coming weeks. But billet price is
at the bottom and more decline in debar price will lead to cut in production
level.
Average price of
debar diameter 14-25 mm started the week at USD 590 /mt ex-work Dezfool for
Roohina Steel co product and USD 598 /mt ex-work Esfahan for Esfahan Steel co
product including 9% VAT. They ended the week respectively at USD 585 /mt and
USD 595 /mt. I-beam size 14-18 also declined by USD 8 /mt to USD 700.5 /mt
ex-work Esfahan including VAT. Esfahan Steel co resisted against downward
trends.
Good news for debar
market is that higher ex-rate and low billet price has made some private sector
mills more interested in exporting to Iraq as their product has demand there.
Flat Products
Imported HRC, 2 mm thickness was not offered till last
Monday in Anzali port when priced at USD 713 /mt on truck in Anzali including
9% VAT and custom duties. Its supply level was limited. Minimum offer price has
been Euro 490 /mt equal to USD 580 /mt cfr Anzali port but supply level is
limited. During first 20 days of current Iranian month ( 23 Aug-11 Sep) around
30,000 tons of the cargo has been imported to Iran when monthly data should be
at least 50,000 tons. For thickness 2.5-15 mm, prices fluctuated a little
during last week in Iran. Average price improved by USD 5 /mt for sizes 3-15 mm
to USD 636 /mt ex-work Esfahan including VAT. Market was quiet and sellers were
resisting against downward trend.
HRP thickness 10-30 mm experienced some
drops for Kavian co products. It declined by USD 2.5 /mt to USD 605.5 /mt
ex-work including VAT. Oxin co products was faced with the same decline in
prices to finish the week at USD 605.5 /mt. Market is quiet and would stay in
the same mood for some weeks.
CRC market was quiet and calm. Ex-rate
fluctuations made domestic and import prices rise just by USD 2.5 /mt as sizes
0.40-2.5 mm average price by Wednesday was USD 811 /mt including VAT. CRC consumers
are still in summer holidays and demand is quiet.
HDG market was stable and average price
of thickness 0.40-2 mm for domestic product was USD 921 /mt ex-work Kashan including
VAT by Sunday. On Wednesday as some sizes of imported HDG experienced rises,
domestic product reached USD 924 /mt.
Ex-rate:
In free market: Rials 38,970/1USD
18th Sep 2017
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Iran Steel Service Center
IFNAA News &
Analysis
http://www.ifnaa.ir/en/home