Billet
Iran billet market was almost quiet during last week. Average price
of billet size 150 mm was USD 495 /mt ex-work including 9% VAT and size 125 mm
was USD 493 /mt ex-work including 9% VAT, by last Saturday. By Wednesday, as
slab was sold at IME at base price of USD 488/mt ex-work excluding 9% VAT which
is extremely high and made sellers stay back. Finally, worries about future
debar price made billet size 150 mm drop to USD 490 /mt and size 125 mm to USD 486
/mt ex-work including 9% VAT.
Long products market is depressed and nobody is interested to buy,
but market insiders hope this trend won’t continue much. Iran domestic billet
price has still at least USD 45/mt to reach global markets prices and should
fill this gap. Therefore, it seems that Iran billet market have no choice but to
rise. Actually in coming month it will happen as export level is rising too.
DRI supply shortage forced small billet mills stop production,
which made billet supply level significantly decline. This limitation seems to
continue for a while. Big mills are using all the DRI available and put small
mills in trouble. Such a problem has been affected on pellet market too. It is year-end
in Iran which traditionally iron ore pellet supply level decrease, with
transportation problems which made this situation worse.
Long
products
Debar diameter 8-32 mm experienced downward
trend till last Monday as dropped from USD 551/mt on Saturday to USD 543 /mt
ex-work including 9% VAT. By Tuesday market was closed and on Wednesday prices
rose to USD 545/mt ex-work including 9% VAT. I-beam price was despite debar,
upward from USD 638/mt to USD 643/mt ex-work including 9% VAT for sizes
14,16,18.
Esfahan Steel co is Iran’s long products market
leader. The mill is careful about its pricing policy as knows if rise prices,
its competitors will take its market share. But when billet price rise, small
producers of I-beam would have to get back, then Esfahan Steel co would have enough
space to raise its prices as is expected to reach USD 672 /mt ex-work including
9% VAT.
For debar, the reason behind last week downward
trend is high inventory level of warehouses by cheap cargoes of lower than USD 560
/mt. Traders are worried about market future trend and prefer selling their inventories
which has made market downward. But it is logical that when billet price rise,
debar price would also improve as its raw material price increase. Traders who
believe in this trend would be winners as debar price have enough space to
reach as much as USD 672 /mt.
Flat Products
Imported HRC 2 mm thickness started week 08 in
Iran at USD 663 /mt on truck in Anzali including 9% VAT and custom duties. Prices
became downward and reached USD 647 /mt by end of the week.
As slab was sold at IME at base price of USD 488
/mt ex-work excluding VAT by last Wednesday, it means domestic HRC would reach
base price of USD 627 /mt excluding VAT which may lead to import demand
improvement. Mobarakeh Steel co was offering its HRC 3-15 mm thickness at USD 616
/mt ex-work including VAT by beginning of the week, after some downward finally
reached USD 617 /mt by Wednesday.
Market insiders expect Mobarakeh Steel co
prices improve in coming future. One obstacle in front of the mill is downward
export level of its HRC as has more than halved during last 9 months of current
Iranian year compared to a year ago. But the mill has enough experience in
export and will compensate this decline. Besides, the mill is increasing its
slab export level too.
Oxin co HRP product price sizes 8-40 mm dropped from
USD 631 /mt to USD 625.5 ex-work including VAT. Kavian co HRP thickness
8-30 mm was also downward from USD 611 /mt to USD 604 /mt. Market sadness, mid-
week Holiday and being last week of the month made HRP market downward.
By announcing new record slab base price at
IME, by Hormozgan Steel co, finished price of HRC would be USD 621/mt ex-work
including VAT. Market should accept that base price of HRC will reach USD 672
/mt in coming months.
CRC market experienced upwards. Most
suppliers are involved in year- end affairs which has made supply level
decline. Import cargoes are also expensive and also limited, therefore prices
were upward during last week but by Wednesday became quiet and calm.
HDG market was also quiet and didn’t experience
any serious fluctuation.
Ex-rate:
In free market: Rials 44,660 /1USD
25 Feb ,2018
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Iran Steel News Bulletin
http://www.ifnaa.ir/en/home