Billet
Billet market experienced some up and downs during last week in
Iran. Average price of sizes 150 and 125 mm was USD 544 /mt ex-work including
9% VAT. By Sunday, as debar price was downward, billet price declines too, but
by Tuesday started rising again. By Wednesday it reached USD 548 /mt by average.
Some big mills such as Arfaa and Chaadormalou offered their billet at base
price of USD 512 /mt ex-work excluding VAT at IME but demand was scarce.
Prices dropped till Tuesday due to market confusion about
Khouzestan Steel co billet base price. By Tuesday, Khouzestan Steel co sold
just 30,000 MTNS of its billet at USD 524 /mt base price at IME. Offering such
a limited amount shows that the mill is mostly interested in export market and
work cautiously in domestic market. Therefore, we shouldn’t expect any
significant drop in Khouzestan Steel co prices unless CIS billet plunge.
Besides, Iran billet export market is active as South Kaveh Steel co sold 50,000 tons of its billet
in export market at USD500 /mt fob when offered in domestic market at base
price of USD 509.5 /mt ex-work excluding VAT. Though, market insiders believe that
export products won’t go back to domestic market in this situation to make it
worse.
Long products
Debar diameter 8-32 mm started the week on Saturday at USD 640 /mt ex-work
including VAT and finished the week at USD 635 /mt on Wednesday. Market sadness
and its confused sentiment made prices down. By Wednesday as Khouzestan Steel
co billet was sold at IME, debar market sentiment improved and downward trend
stopped. But with current billet base price at IME (USD 524/mt), long products
market can still experience some drops. Besides, DRI price is also downward
which will affect scrap market too. But at the moment long products mills are
producing steel with USD 559.5 /mt purchased billet. Also steel mills are low
in cash and need to increase sales volume.
The pressure on prices was also seen in I-beam market as average price
of size 14,16,18 dropped by USD 5/mt to USD 716/mt ex-work Esfahan including
VAT by Wednesday.
This situation was also seen in angle and channel markets too with
prices down by USD 19 /mt during last week.
Flat Products
Imported HRC 2 mm thickness was USD 709.5/mt
on truck in Anzali port including custom duties and 9% VAT by last Saturday and
stay almost unchanged till end of the week. At the moment importing this cargo
is not profitable therefore number of importers is limited which will affect import
volume definitely. Also domestic products are taking share of import market. For
thicknesses higher than 2.5 mm, domestic market experienced a week full of up
and downs as finally rose from average price of USD 674 /mt to USD 677/mt
ex-work excluding VAT.
Oxin and Kavian co HRP product was
down mainly due to lower billet price at IME. Average price of HRP sizes 10-40
mm from Oxin co dropped from USD 689/mt to USD 682 /mt ex-work including VAT.
CRC market was confused due to
Mobarakeh Steel co policy at IME. Besides, global prices have rose a little
during last 3 months, which has made importing CRC to Iran unprofitable. Demand
level is low which has made CRC market sentiment worse. Price f sizes 0.40-2 mm
dropped from USD 839 /mt to USD 788/mt by end of last week.
HDG market was also downward as
dropped from USD 991 /mt to USD 984 /mt ex-work including VAT.
Ex-rate:
Rials 42,000/1USD
30 April ,2018
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Iran Steel News Bulletin
http://www.ifnaa.ir/en/home