Billet
Billet market started its first
working week after New Year Holidays full of ambiguities with up and downs due
to harsh ex-rate fluctuations. Prices were upward from Saturday till Monday,
then market stopped and became downward by Wednesday. Domestic billet size 150
mm was respectively USD 567 /mt , USD 600
/mt and USD 577 /mt ex-work including 9% VAT on last Saturday, Monday and
Wednesday. Size 125 mm was also respectively USD 555 /mt , USD 597 /mt and USD 571
/mt ex-work including 9% VAT on last Saturday, Monday and Wednesday.
The surge of ex-rate made billet
price up and down. The
government announced that it would enforce a single exchange rate to the
dollar, banning all unregulated trading after Rial hit an all-time low of Rials
62000 /1USD. Now official rate is Rials 42000 / 1 USD.
It is expected that for around 2 months, Iran steel export level decline,
but market would justify itself gradually. Based on the government’s
announcement by end of last Year for holding steel products prices fixed and
stable at IME (Iran Mercantile Exchange), billet base price at IME shouldn’t be
higher than USD 488 /mt excluding VAT. But by last Wednesday Khouzestan Steel
co sold its billet at USD 568/mt including VAT which is USD 68 /mt higher than
its last sale at 26 Feb. Therefore, it is expected that in coming weeks:
1- Billet price will decline in Iran market
2- Billet producers will try harder for rising export level to get rid of
current domestic market sadness.
Long
products
Long products
were upward in Iran domestic market after New Year Holidays till last Tuesday. New
government policy regarding ex-rate made it downward again. Debar diameter 8-12
mm was USD 621 /mt last Saturday, then reached USD 664 /mt by Tuesday and ended
the week at USD 661 /mt ex-work including VAT.
I-beam market
was in an opposite mood. Average price of size 14-18 was upward from USD 714
/mt to USD 727 /mt and finally USD 734 /mt ex-work including VAT by Wednesday.
Actually by Wednesday there was almost no buyer in long products market and
everybody wanted to get rid of its inventory. Prices dropped by USD 12-19 /mt. Retailers
warehouses started the New Year in Iran with debar at USD 595-619 /mt,
therefore it is possible that market price reach this level. But lower price
depends on billet price level. Billet price also depends on scrap and DRI price
level. Last Wednesday, scrap price dropped but DRI price was unchanged at USD 293-298
/mt excluding VAT.
Debar market is a seller market at the moment, but if mills resist against
any price decline, market would become stable in a very positive point of view.
Flat Products
HRC 2 mm thickness followed other
steel products trend during last week as started the week at USD 719 /mt on
truck in Anzali including 9% VAT. Upward trend continued till Monday when
reached USD 776 /mt, then started dropping as by Wednesday was USD 733 /mt.
Global prices have not changed for this product as offers have been around Eur
510 /mt cfr for Russian material and USD 570 /mt cfr for Kazakh product. But sellers
prefer waiting for Iranian buyers bid price due to current situation in Iran
market. With ex-rate of Rials 42000 /1 USD, HRC 2 mm thickness price should drop
to around USD 667 /mt.
Mobarakeh Steel co flat products prices
were upward at IME. Its HRC rose from USD 660/mt to USD 711.5/mt by Tuesday and
dropped to USD 690 /mt ex-work excluding VAT by Wednesday. Many sellers have
cheap purchased cargoes of last Year in their warehouses. With new ex-rate
policy, Mobarakeh Steel co can’t increase prices more, therefore it is expected
that market stay stable for a while.
Kavian co HRP was not offered
during last week in Iran. Oxin co HRP thickness 8-40 rose by USD 22 /mt to USD 718
/mt ex-work including VAT by last Monday and finished the week at USD 701 /mt.
CRC market was upward by around USD 24 /mt , then stopped by Tuesday.
Kazakh origin CRC was USD 640 /mt cfr Iranian ports, which would be USD 738 /mt
after custom duty and VAT. Mobarakeh Steel co CRC product was sold at USD 733
/mt ex-work excluding VAT at IME by last Monday, then reached USD 855 /mt for
thickness 0.40-2 mm by Wednesday. But market is not active.
HDG market trend was the same as CRC. Its price rose from USD 945
/mt to USD 1001 /mt ex-work including 9% VAT during last week in Iran.
Ex-rate:
Rials 42,000/1USD
16 April ,2018
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Iran Steel News Bulletin
http://www.ifnaa.ir/en/home