Billet
Billet price
improved a little during week 39 in Iran. Average price of billet size 125 and
150 mm increased by USD 19 /mt to USD 453 /mt ex-work including 9% VAT. But
size 150 mm was also heard at USD 436-442 /mt by some sellers by end of the
week. Market inventory was at the bottom and made prices upward. Currently billet
producers increased sales level but their raw material purchase such as DRI and
scrap was low. Scrap supply level was limited but its price dropped by up to USD
38 /mt. DRI price also dropped by USD 8 /mt despite low supply level. Steel
mills were still cautious in buying. Downward trend of global iron ore market
made billet producers more interested to get rid of available inventory by
declining prices. Therefore during previous weeks market inventory declined and
price of billet has reached the bottom.
During last week re-rollers
became worried about billet availability and started bidding, these inquiries
made market upward. A seller willing to deal its billet at USD 429 /mt a week
ago, didn’t offer lower than USD 439-447 /mt by last week. By second half of
the week, higher iron ore price in China import market made Iran domestic
billet market also optimistic.
In coming weeks Iran
market would be quiet and billet price would stay in range of USD 421 -459.5
/mt ex-work including VAT. Transactions level would be limited and also
production of mills will stay at the bottom.
Long products
Long products were downward by first
half of last week in Iran. Prices were down by average USD 4 /mt per day. Average
price of debar diameter 14-25 mm was USD 556.5 /mt ex-work dezfool and USD 582
/mt ex-work Esfahan including 9% VAT. I-beam size 14-18 average price was also
USD 674 /mt ex-work Esfahan. Prices reached bottom during first 3 days of the
week as debar price became USD 536 /mt . Market was expecting another USD 25.5 /mt
decline for debar but limited supply of billet which made its price upward
helped long products market too. Long products market became stable. Market
stability made purchase level increase and helped market sentiment. By end of
the week prices reached near beginning of the week as debar in Dezfool reached
USD 549 /mt ex-work including VAT and in Esfahan USD 585 /mt ex-work including
VAT. I-beam price also improved to USD 697 /mt.
Flat Products
HRC 2 mm thickness with width of 1m
started the week at USD 705 /mt on truck in Anzali port including 9% VAT and
custom duties. Width 1.25 m was USD 689 /mt. Width 1.25 m was stable in price
till end of the week but width 1 m dropped by USD 10 /mt. Domestic mills were
also in the market offering but demand level was low.
In IME ( Iran mercantile exchange),
Mobarakeh Steel co offered its HRC class B around USD 15 /mt higher than 2
weeks ago and sold at base price of USD 631 /mt ex-work excluding VAT. This
upward movement by market leader made retail prices rise by average USD 10 /mt
till end of the week.
Oxin co HRP market experienced some
fluctuations. Market was quiet and made price down to USD 587 /mt or lower by
Monday, by end of the week price just improved by USD 2.5 /mt. Demand level is
low and market is unlikely to improve unless mills increase export level.
Kavian co products for thickness lower than 20 mm was in supply shortage and not
offered. Prices declined by USD 4 /mt to USD 587 /mt ex-work including VAT by
end of the week.
CRC market was stable with demand
level scarce. HDG market was also quiet and depressed.
Ex-rate:
In free market: Rials 39,170 /1USD
03rd Oct 2017
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Iran Steel Service Center
IFNAA News &
Analysis
http://www.ifnaa.ir/en/home