Billet
Billet price was downward during last week in
Iran market. Size 150 mm dropped by USD 7 /mt to USD 439 /mt ex-work including
9% VAT and size 125 mm declined by USD 5 /mt to reach USD 429.5 /mt ex-work
including 9% VAT by end of the week.
Despite downward trend, market insiders expect
Iran domestic billet price rise, because:
1- DRI supply level is limited at the moment.
2- Scrap price has reached near USD 356 /mt ,
buying interest of billet producers have affected scrap positive sentiment.
3- Global billet price is upward, which will
improve Iran billet and DRI export level.
4- Long products mills billet inventory level
is low due to current Holidays and market quietness.
5- Long products market is also ready for upward
trend.
This positive sentiment won’t continue except
ex-rate upward trend and export demand help export level improve.
Long products
Long products were stable during last week in Iran domestic market.
Average price of debar diameter 14-25 started week 49 at USD 542 /mt ex-work
Esfahan including 9% VAT last Saturday. By Sunday some sellers tried increasing
prices but were not successful. By Tuesday market participants were talking
about possible rise in debar price by week 50.
Average price of I-beam size 14-28 from Esfahan Steel co stayed
unchanged at USD 641 /mt ex-work including 9% VAT with buying
interest scarce.
Possibly some stockpiling may increase long
products prices this week as market seems ready to accept rises.
Flat Products
HRC 2 mm thickness experienced USD 9 /mt decline by middle of last
week to USD 676/mt on truck in Anzali including 9% VAT. There are two reasons behind
this decline including:
1- Talks about declining custom tariffs which possibly would be up
to USD 59 /mt. This news has made demand level under pressure.
2- Higher domestic supply when demand level is limited. Generally,
market sentiment was downward and made buyers more cautious.
Price of thickness 3-15 mm was stable, but is expected to rise in
coming month as HRC price at IME have been rising during last one month. HRP
thickness 10-15 mm was in limited demand but domestic leaders Oxin and Kavian
Steel co are in the market competing. For thicknesses higher than 15 mm, Oxin
co product declined by up to USD 7/mt and Kavian co prices by around USD 9 /mt.
CRC price decreased. News about lowering import tariff affected CRC
market sentiment as Iran monthly import level of CRC is around 30,000 tones.
Its prices declined by USD 7 /mt by average. Demand is scarce and CRC price may
continue declining.
HDG market was stable during last week but due to CRC price
decline, HDG price would also be faced with some declines.
Ex-rate:
In free market: Rials 42,140 /1USD
11 Dec ,2017
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Iran Steel News Bulletin
http://www.ifnaa.ir/en/home