Billet
Billet price was stable during last week till Tuesday and price was
around USD 586 /mt ex-work including 9% VAT with around USD 2 /mt fluctuations.
By Wednesday as Khouzestan Steel co offered billet at IME, its pricing made
market confused. Khouzestan Steel co billet at base price of USD 524 /mt was
finalized at USD 576 /mt ex-work including VAT, but it was a deal with 90 days
payment which means 4.5% bank interest rate should be added to it. Actually
final finished price of this billet after VAT and bank interest rate is USD 656
/mt.
After this deal was done, Iran billet and debar market became
disarranged and almost stopped. Average finished price of billet rose from USD 587/mt
to USD 602-609.5 /mt and some mills were talking about USD 619-631 /mt too.
Market was expecting upward trend in billet price but not as much as USD 52 /mt
for base price.
Based on DRI price in Iran, this price for billet seems logical but
due to new formula for pricing billet , it should be USD 541 /mt.
Long products
Debar price experienced some fluctuations during last week in Iran.
By last Saturday, average price of debar diameter 8-32 mm was USD 648 /mt
ex-work including VAT. By Sunday, DRI was offered at IME at base price of USD 269
/mt and sold at USD 293 /mt including VAT. After this transaction, price of billet
rose by USD 7 /mt and average debar price reached USD 646 /mt . But market was
quiet and lack of demand made price decline by USD 3/mt till Tuesday to USD 667
/mt. As billet price surge upward to USD 576 /mt at IME by Wednesday, debar market
stopped and some mills rose price to USD 714 /mt, but no deal was done and
market stayed quiet. Market is confused about billet price future trend and also
inventories are full of cheap purchased debars. Everybody is also worried and
waiting for a clear sentiment.
Flat Products
HRC 2 mm thickness was upward during last week. It started the
week at USD 719 /mt on truck in Anzali including 9% VAT and custom duty on last
Saturday, then rose to USD 30600 /mt by Tuesday, and USD 745 /mt by Wednesday mainly due to change in ex-rate
not better demand.
Thicknesses 2.5-15 mm in domestic market rose by Mobarakeh Steel co
from USD 687.5 /mt to USD 704 /mt ex-work including VAT but demand level was
limited.
Oxin co HRP had a good market and rose from USD 694/mt to USD 714.5/mt.
Market was expecting higher prices in coming month due to rise in slab price. Actually
better market of Oxin co was mainly due to absence of Kavian co in the market.
CRC average price for thicknesses 0.40-2 mm
started the week at USD 831 /mt. Its market was depressed but supply has
declined sharply due to limited import level. Exchange market ambiguities made
CRC market quiet and prices upward as reached USD 849 /mt ex-work including VAT
by Wednesday. Some sizes were in supply shortage.
HDG market followed CRC trend and stayed
upward but transactions were still limited like a few week ago.
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Official Ex-rate (CBI) :
Rials 42,000/1USD
14 May ,2018
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Iran Steel News Bulletin
http://www.ifnaa.ir/en/home