Billet
Billet price was
upward during week 24th in Iran. Average price started the week at
USD 634 /mt and reached 676 /mt ex-work including 9% VAT by end of the week.
Khouzestan Steel co and Khorasan Steel co billet was not offered and private
mills offer price for size 150 mm was not lower than USD 678.5 /mt by end of
the week. By Tuesday, Khouzestan Steel co sold 30,000 tons of its billet at
base price of USD 613 /mt which has increased by USD 37 /mt compared to the
deal done around a month ago on 9th May 2018. Base price has
increased by 7% during a month which is logical when taking into account DRI
price and its relation with billet base price. South Kaveh Steel co also
offered 20,000 tons of its billet at base price of USD 557 /mt at IME last
Wednesday and was succeeded to sell at USD 606/mt ex-work excluding VAT.
long
products
Average price of
debar diameter 8-32 mm was USD 718 /mt ex-work including 9% VAT last Saturday.
When billet price rose by Tuesday at IME, debar price became upward and
continued till end of the week. By Thursday, some mills were offering up by USD
24 /mt. Esfahan Steel co sold its debar basket at IME on Tuesday at base price
of USD 703 /mt ex-work excluding VAT when first offer price was USD 655 /mt. This
deal improved market sentiment and made prices upward.
I-beam also was
offered the same day at base price of USD 690 /mt , but sold at USD 717 /mt
ex-work excluding VAT. In retail market, average price of I-beam was USD 755
/mt ex-work including VAT on Saturday and reached USD 778 /mt till Wednesday.
Angle and channel
also experienced the same situation. Prices were totally up by USD 83 /mt
during the week, which made some buyers confused and stayed out of market. The
upward trend in prices was something influenced by higher billet price. Also
some traders increased purchase levels by beginning of the week, because during
truck drivers’ strike, their warehouses became empty and needed to replace inventory.
But this upward trend won’t continue in
coming days as many cargoes have been bought at base price of USD 643 /mt
before strikes which was not transported by trucks. Market needs around 2 weeks
to justify itself with the situation.
Flat
products
HRC 2 mm thickness
started week 24th at USD 730 /mt on truck in Anzali including custom
duty and 9% VAT. Upward trend started by beginning of the week as it reached
USD 781 /mt on truck in Anzali by Wednesday. Higher ex-rate made prices upward.
Besides, CIS sellers also stopped offering to Iran. Lack of import made buyers
go to domestic sellers and this made domestic prices also upward. Mobarakeh
Steel co HRC class B with base price of USD 550 /mt was faced with more than
100,000 tons of demand and this made sale price reach USD 643 /mt . HRC class C
also was sold at USD 605 /mt base price at IME. Average price of HRC 3-15 mm
thickness of Mobarakeh Steel co was USD 695 /mt ex-work including VAT in retail
market which rose to USD 714 /mt by end of the week. Market was full of
ambiguities about thicknesses more than 6 mm. Some market participants don’t expect
prices rise as market can’t absorb more price increase. But some others believe that higher demand at
IME and supply control by market leader Mobarakeh Steel co will make prices
improve.
For HRP, prices were
almost stable till Tuesday when slab offer of Khouzestan Steel co at IME made
market full of ambiguities. Its first base price offer was USD 557 /mt but
final price of the deal was USD 578 /mt ex-work excluding VAT. By Wednesday,
market average price was USD 24 /mt higher than Saturday. Upward trend is not
expected to continue.
CRC market was quiet
by beginning of the week and every one waiting for Mobarakeh Co activity at
IME. Average price of CRC thickness 0.40-2 mm was USD 850 /mt ex-work including
VAT. The mill sold CRC at base price of USD 699 /mt on 07th May, but
last week its offer price reached USD 683 /mt and after competitions at IME
rose to USD 752 /mt ex-work excluding VAT. Its sale price has rose by 8%
compared to a month ago. This change affected market as ex-rate fluctuation
also made prices rose to USD 893.5 /mt including VAT by Wednesday. As CIS sellers
have stopped offering to Iran, Mobarakeh Steel co will take all domestic market
share within a month.
HDG price also
improved from USD 1015 /mt to USD 1028 /mt by Tuesday but as market couldn’t
accept the amount of rise price dropped to USD 1013 /mt by Wednesday.
Official Ex-rate (CBI):
Rials 42,000/1USD
June 18, 2018
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Iran Steel News
Bulletin