Billet
Billet market experienced an upward trend during last week in Iran.
Billet size 150 mm started week 06th at USD 436 /mt ex-work
including 9% VAT. Size 125 mm was also USD 431.5 /mt on last Saturday. By Sunday
upward billet price followed ex-rate upward trend and reached USD 444/mt for
size 150 mm and USD 400/mt for size 125mm. Beside upward trend of billet price,
currently its supply level has declined significantly due to :
1- Higher scrap price and its supply shortage. Higher scrap price
is not affordable for billet producers and has declined their profit margin
significantly.
2- Strange decline of DRI supply which has affected billet
production. Minimum price of DRI is USD 224 /mt at the moment but in limited
supply too.
Higher ex-rate has made export more interesting for the mills. A
mill was succeeded to load around 85,000 mt billet in just 3 days. This
reduction of billet inventory at warehouses made producers more eager to buy pellet
and DRI, which are in limited supply too. Therefore, it is clear that billet
production is under pressure significantly.
Long
products
By last Saturday, average price of debar
diameter 14-25 mm was USD 514 /mt ex-work including 9%
VAT by Esfahan Steel co and USD 484 /mt ex-work including 9% VAT by Roohina
Steel co. I-beam average price for sizes 14,16,18 mm was USD 594 /mt ex-work Esfahan
including 9% VAT. Price fluctuated upward a little and average price of debar
from Roohina co reached USD 499/mt and Esfahan co debar was USD 527/mt. I-beam
average price also reached 600/mt. The only reason behind fluctuations was
upward ex-rate as many Iranian mills are now involved in export business too and
ex-rate change also affect their domestic prices.
Ex-rate fluctuations made long
products market confused. But Iranian mills production is depended on domestic
raw materials and should not be affected by ex-rate rise. At the moment long
products production include very limited profit margin which will make production
level more limited.
Flat Products
HRC 2 mm thickness started week 06th at USD 588
/mt on truck in Anzali including 9% VAT and custom duties, rose by USD 8 /mt by
Sunday due to higher ex-rate, then reached USD 594 /mt and stayed stable at
this level. Thickness 2.5-15 mm average price improved because of previous week
upward trend of size 6 mm by Mobarakeh Steel co. Slab base price of Hormozgan
Steel co increased by USD13/mt to USD 423/mt ex-work excluding VAT. This upward
trend made HRC price rise too.
Kavian co HRP which had been scarce currently was offered
during last week but was upward as sizes 12-30 mm rose from USD 526/mt to USD
553/mt ex-work including VAT. Oxin co HRP was upward too as average price of
sizes 8-40 mm rose by USD 21.5 /mt to USD 570/mt ex-work including VAT. It is
expected that HRC price continue upward trend for a while up to USD 21 /mt.
CRC market was in a slow upward trend from USD 679/mt to USD 693
/mt on truck in Anzali including VAT and custom duty due to ex-rate change and
lower supply level of import cargos between Sunday and Tuesday.
HDG market followed upward trend of CRC, but its demand level has
not changed. By Wednesday its price reached USD 847/mt for thickness 0.50-2 mm,
which was USD 33 /mt higher than beginning of the week.
Ex-rate:
In free market: Rials 47,270 /1USD
12 Feb ,2018
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Iran Steel News Bulletin
http://www.ifnaa.ir/en/home