Billet
Domestic
billet sizes 150 and 125 mm started week 42 at respectively USD 490-498/mt and USD 483-490 /mt ex-work including 9% VAT. Prices were
downward as size 150 mm finished the week at USD 468/mt
and size 125 mm at USD 458
/mt.
Downward
trend in billet market was due to quiet long products market and confusions about
DRI price in Iran. According to new formula of Ministry of Industry, Mine and Trade, DRI price should reach half of Khouzestan Steel co
billet price at IME. Therefore, DRI price should decline from current USD 239-256
/mt to USD 224-229
/mt ex-work including VAT. This downtrend would make billet price USD 373-398
/mt ex-work excluding VAT.
Long products
Long products market was in free fall as expected. Debar diameter
14-25 mm from Roohina Steel co experienced downward movement from USD547.5 /mt
on Saturday to USD 537.5/mt ex-work including VAT on Wednesday. Esfahan Steel
co product dropped from USD 575 /mt to USD571 /mt . Other producers’ debar price
experienced more than USD 25/mt drop. Mills were competing for more sales till
end of the week.
This trend was seen in I-beam market too despite Esfahan Steel co
controlling market. I-beam size 14-16-18 dropped by USD7 /mt to USD683/mt ex-work
including VAT.
Negative sentiment made traders compete with mills for more sales
as they had high inventory level and worried about more declines.
Flat Products
HRC 2 mm thickness was also downward like other steel products
during last week in Iran. It dropped by USD 12 /mt to USD 722 /mt on truck in
Anzali including 9%VAT and custom duties. Calm exchange market and higher
offers in the import market besides domestic production availability made price
downward. Thickness 2.5-15 mm was down from USD 634/mt to USD631/mt ex-work
including VAT. Demand was limited but sellers resisted against high discounts. Domestic
HRP sizes 10-40 mm from Oxin co were downward too. It dropped by USD 12/mt to
USD 585/mt ex-work including VAT. Kavian co product was also down from USD585/mt
to USD 578.5/mt. Both domestic and export market were affected by low demand
level.
CRC market was quiet and price dropped by USD2/mt to USD 790.5 /mt
on truck in Anzali including VAT and custom duty. Mobarakeh steel co products
were also available but demand level was low.
HDG price was almost stable declining by USD8/mt to USD911/mt including
VAT due to lower ex-rate which made import prices downward.
Ex-rate:
In free market: Rials 40,180
/1USD
23 Oct
2017
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Iran Steel News Bulletin