Billet
Billet market was
downward during last week in Iran. Billet size 150 and 125 mm started the week in
retail market at respectively USD 456.5 /mt and USD 449 /mt ex-work including
VAT. Downward trend started by Saturday and continued till end of the week. Size 125 mm was heard lower than USD 436 /mt
in some cases. Khouzestan Steel co billet base price at IME which had been sold
at USD 551 /mt ex-work excluding VAT,
was also heard at USD 500 /mt by end of the week and seller was ready to give
some more discount.
Global iron ore price
has dropped to under USD70/mt cfr China which is the lowest during last 5
months. Import billet is offered at USD490-520/mt fob black sea but buyer is
limited. This trend may end in lower prices for import offers in billet market which
would affect Khouzestan Steel co sale price definitely. In Iran market DRI
price has been currently stable and scrap is in limited supply level. When long
products market is quiet, billet suppliers are mostly facing with high
inventory level. This trend may finish in production cuts.
Generally, market
participants believe billet price in Iran won’t decline more than USD 26 /mt. Market
would be quiet till October due to religious mourning ceremonies, then a clear
trend may appear.
Long products
Long products were
downward through last week in Iran. Debar diameter 14-25 mm offer by Esfahan Steel
co dropped from USD 596 /mt to USD 577/mt ex-work including VAT by end of the
week. The same sizes were downward in Dezfool market too as declined by USD 2.5
/mt to USD 578 /mt ex-work including VAT.
Average price of I-beam
size 14,16,18 also dropped from USD 692 /mt to USD 680 /mt ex-work Esfahan
including VAT. Sellers were in trouble as some small mills were ready for up to
USD 28 /mt discount.
Buyers are absent worried about more declines
in the market. At the moment billet and debar price gap is around USD 77 /mt in
Iran domestic market which should be near USD 51 /mt normally.
Flat Products
HRC 2 mm thickness experienced around USD 5 /mt decline during week
38 to reach USD 703 /mt on truck in Anzali including 9% VAT and custom duty. In
domestic market Mobarakeh Steel co HRC 3-15 mm thickness dropped from USD 648
/mt to USD 647/mt ex-work including VAT. For HRP 15-40 mm, Oxin co product declined
by end of the week due to lower slab price at IME which declined by USD 23 /mt.
Average plate price was down from USD 606 /mt to USD 597.5 /mt ex-work
including VAT.
Kavian co HRP was also downward from USD 603 /mt to USD 594.5/mt
ex-work including VAT. HRC market is facing with weak demand at the moment.
CRC market was also quiet and experienced some declines by end of
the week. Sellers were resisting against declines but finally accepted market
downward trend. In import market some sellers were ready for USD 20-30/mt discount.
Market insiders expect some declines for coming offers. Meanwhile CRC consumers
are still in Holidays and market trend may became clear in October after
current religious mourning ceremonies.
HDG market was stable with some sizes of 0.40-2 mm improved due to
supply shortage from USD 926/mt to USD 930/mt ex-work including VAT.
Ex-rate:
In free market: Rials 38,990 /1USD
25th Sep 2017
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Iran Steel Service Center
IFNAA News &
Analysis
http://www.ifnaa.ir/en/home