Billet
Billet was downward during last week in Iran. Size 150 mm started
the week at USD 450.5/mt and size 125 mm was USD 446/mt ex-work including 9%
VAT. Just small mills were offering billet which due to long products market
quiet sentiment were not good sellers. Therefore, price of size 150 mm reached
USD 439 /mt and size 125 mm became USD 435/mt ex-work including 9% VAT on
Wednesday. By end of the week some offers were available at under USD 430 /mt. Lower
price of billet and long products market sadness made billet demand level worse
and production level declined more.
At the moment big Iranian billet producers are active in export
market and small mills are working in domestic market. Till ex-rate is upward
and export demand is available, this situation won’t change. But Chinese Lunar
New Year Holiday is near and some declines have been seen in global billet
markets. If Iran export level drop, exporters’ billet inventory would get back
to domestic market and make small mills’ billet price cheaper. Anyway, downward
trend won’t be significant as profit margin of small mills is limited.
Long
products
Debar price was downward in Iran last week
despite Esfahan Steel co absence. Average price of debar size 14-32 mm rose by
USD 18 /mt to USD 559 /mt ex-work Esfahan including VAT, but Roohina Steel co
product dropped by USD 4.5 /mt . Other mills were also under pressure due to
lack of demand and were forced to decline prices. By Wednesday lower billet
supply made debar market a little improved.
I-beam size 14-18 was also down by USD 7 mt to
USD 627 /mt ex-work Esfahan including 9% VAT but is expected to improve
in coming days. The news about Esfahan Steel co exported debar cargo to UK, has
made market participants hopeful as if it continues, would open domestic market
doors to Iranian re-rollers. At the moment there are enough debar inventory at
trader’s warehouses, though significant price fluctuation seems unlikely.
Flat Products
HRC
2 mm thickness was USD 632/mt on truck in Anzali port including 9% VAT by last Saturday, but
dropped by USD 4.5 /mt till end of the week. Market sadness and higher domestic
supply made prices downward.
Price of thickness 2.5-15 mm was stable but
demand was scarce.
Oxin co HRP was stable. Kavian co products
were also unchanged and demand level was limited too.
CRC
market was quiet. Higher supply level has made market stable. But generally at
the moment demand is low.
HDG market was active. It has been some times
that lower supply level of HDG has made supply-demand balanced. Any change in
one of these factors, would make other one response. Downward trend in price
seems unlikely at the moment.
Ex-rate:
In free market: Rials 44,170 /1USD
15 Jan ,2018
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Iran Steel News Bulletin
http://www.ifnaa.ir/en/home