Billet
Billet was upward during last week in Iran domestic
market. Size 150 mm started the week at USD 445 /mt ex-work including 9% VAT
and size 125 mm was USD 440 /mt ex-work including 9% VAT on last Saturday. By
end of the week size 150 mm improved by USD 7 /mt and size 125 mm by USD 9.5
/mt.
Let’s take a look at the reasons behind this upward
trend:
1- Higher billet price in global markets as CIS export
offer is over USD500/mt FOB Black Sea.
2- Higher Iran’s billet export level with improvements
in its prices. Far East billet buyers are fueling their warehouses as New Year
Holidays is near. This upward demand level had a positive effect on Iran billet
export market.
3-Lower supply level of market leader Khouzestan Steel
Co and rumors about possible rise of its billet price to follow global markets
trend.
If this rumor became true and Khouzestan Steel co
billet pricing in Iran domestic market follow global markets, domestic billet
price would surge upward by up to USD 72 /mt. Therefore, demand level of small
private mills would rise and they may rise prices too.
Long products
Long products were upward in Iran domestic market.
Esfahan Steel Co increased its debar offer by Sunday around USD 12 /mt but lack
of demand made market silent with no response. Roohina Steel co offered its
debar at USD 517 /mt ex-work including VAT and by end of the week stopped
discounting by up to USD 9.5 /mt.
By Tuesday onward, upward trend in long products began
and is expected to continue this week as:
1- Billet price rose in domestic market and may rise
more following global markets trend.
2- Currently some infrastructure projects became
active which has affected demand level positively.
Market insiders believe if billet upward trend continue
as expected, debar price can improve by up to USD 5 /mt .
I-beam size 14-18 experienced around USD 16 /mt rise to
USD 652 /mt ex-work including VAT and is expected to follow billet upward
trend.
Flat Products
Imported HRC 2 mm thickness improved by USD 5 /mt
during last week in Iran following global markets upward trends and reached USD
670 /mt on truck in Anzali including 9% VAT and custom duties. Import offers
has increased by USD 40 /mt including freight and due to high demand in Fareast
prices won’t decline in near future. If slab price stay unchanged domestic
prices would be stable. If not, domestic flat products prices would rise too.
For thickness 2.5-15 mm, domestic prices were stable
due to lack of demand. Mobarakeh Steel co offer price was stable at USD 602 /mt
ex-work including VAT. Supply level for some thicknesses under 6 mm is
low and may make prices rise in coming days.
Oxin co HRP market faced with some fluctuations. Demand
was limited but lower offer level made market sentiment upward by Tuesday. But
other small retailers justified lack of supply and this made thickness 10-40 mm
drop from USD 570.5/mt to USD 566 /mt by Wednesday. Market is still full
of upward trend rumors but demand is low and won’t support prices.
Kavian Steel co HRP was not interesting for buyers and
made prices decline. Average price dropped from USD 546 /mt to USD 537/mt ex-work
including VAT.
CRC market was quiet and its price dropped in domestic
market from USD 763 /mt to USD 760/mt ex-work including VAT. In import
market CRC price has increased currently by USD 30 /mt to USD 630 /mt cfr
Anzali port for thicknesses 0.70 - 1.5 mm but its demand is limited in Iran
market.
HDG price experienced some declines as expected up to
USD 5 /mt.
Ex-rate:
In free market: Rials 41,780 /1USD
18 Dec ,2017
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Iran Steel News Bulletin
http://www.ifnaa.ir/en/home