Billet
Billet price was seriously upward during last week in Iran. Size
150 mm rose from USD455/mt ex-work including 9% VAT on Saturday to USD 490 /mt
on Wednesday. Size 125 mm also increased by USD 31 /mt to USD 485 /mt ex-work
including 9% VAT. South Kaveh Steel co transacted its billet size 150 on
Wednesday at base price of USD 437 /mt ex-work excluding VAT at IME which is
equal to USD 476 /mt after 9% VAT. But
as the mill location is far from Khouzestan Steel co its transportation fees
would be higher therefore its finished price would be USD 487 /mt .
There were three factors behind upward trend of billet in Iran last
week:
1- significant upward trend of ex-rate.
2- Higher export level of billet
3- Serious DRI supply shortage
Long
products
Long products were upward during week 07th
. Average price of debar 8-32 mm thickness in domestic market started the week
at USD 515 /mt ex-work including 9% VAT. As ex-rate surged upward and billet
price rose, debar suppliers stopped offering by last Sunday. By Monday market
started again and by end of the week price reached USD 540 /mt. Actually debar
price rose by 5% during just 3 days last week.
Average price of I-beam size 14-18 was USD 618.5
/mt ex-work Esfahan including VAT by Saturday last week, by Tuesday it reached
USD 629 /mt and Wednesday there was no seller in the market.
Esfahan Steel co I-beam base price at IME has
reached USD 578 /mt which is near the peak of USD 629/mt. Generally we can say
upward trend of I-beam, debar and billet was mainly due to higher ex-rate.
Market participants expect market stay upward
as export level of billet and long products is rising and DRI and scrap supply
restrictions is also important.
Flat Products
Imported HRC 2 mm thickness started the week at USD 610 /mt
on truck in Anzali including 9% VAT and custom duties. By ex-rate surging
upward, HRC price also rose to USD 656 /mt. Competition of domestic mills didn’t
let HRC price change significantly. Finished price of HRC 2-4 mm thickness from
domestic mills would be USD 568 /mt ex-work including VAT. Therefore, import
cargoes are feeling trouble from domestic material.
Thickness 3 mm or higher was also upward. For size 3-15 mm
from Mobarakeh Steel co, price rose from USD 592 /mt to USD 597/mt ex-work
including VAT. Thicknesses 2.5,5 and 6 mm are seriously in shortage.
Oxin co HRP thicknesses 8-40 mm increased from USD 587/mt to
USD 616/mt ex-work including 9%
VAT. Market activity was low. Kavion co HRP also rose from USD 584/mt to USD 596/mt
ex-work including 9% VAT.
CRC market experienced upward trend due to
ex-rate surge and lack of supply in import market. But Mobarakeh Steel co CRC
is available in domestic market.
HDG price followed CRC and average price of
thickness 0.40- 2 mm rose from USD 864 /mt to USD 871/mt ex-work including VAT.
HDG market would be facing with challenge of upward trend of zinc in coming
Iranian year as global price of zinc is upward.
Ex-rate:
In free market: Rials 45,750 /1USD
19 Feb ,2018
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Iran Steel News Bulletin
http://www.ifnaa.ir/en/home