Billet
Iran billet market started week 26 upward by last Saturday and this trend
continued till Monday as price rose from USD 695 /mt to USD 724 /mt ex-work
including 9% VAT. Then, prices became downward as by Wednesday average price was
USD 712 /mt. Lack of demand made billet price decline.
Debar base price peaked during last week and made traders staying out of
market and avoid purchasing. DRI price which was USD 309-317 /mt ex-work excluding
VAT till last Monday, dropped to USD 300 /mt by Wednesday with buyers staying
out of market. Scrap price was also downward during week 26 which would affect
billet downward trend. Billet price won’t stay stable this week and market
would face sellers’ competitive activities.
long
products
strong fluctuations,
made some debar suppliers avoid offering by last Saturday. By Sunday average
price of debar diameter 8-32 mm was USD 812 /mt which reached USD 821 /mt by
Monday. Low supply level made price upward to USD 834 /mt. Some mills like
Khorasan Steel co are in maintenance period and are not supplying debar. Some insiders
expect debar price drop in coming days as some traders started strong supplies
from last Wednesday. A significant concern at the moment is possible effect of lower
export level of raw material and finished steel products by next month. Domestic
market is under pressure.
Esfahan Steel co
sold 25, 000 tons of its I-beam at bottom base price of USD 680 /mt . Some
cargoes were sold at USD 728.5 /mt ex-work excluding VAT. In retail market, average
price of I-beam rose from USD 794 /mt to USD 819.5 /mt including VAT.
Other long products
were in a same mood as debar.
Flat
products
HRC 2 mm thickness started
the week at USD 816 /mt and limited supply level made price rose to USD 844.5
/mt on truck in Anzali including 9% VAT and custom duties. It is not clear that
in coming days which factor would affect HRC price more: lower ex-rate or
limited supply level. As market sentiment is negative and pipe and profile
prices are also downward, upward trend in HRC price seems unlikely.
In domestic market,
Mobarakeh Steel co HRC 2.5-15 mm thickness was by average USD 753.5 /mt ex-work
including VAT by beginning of the week, market was confused during the week and
price trend was not clear. Mobarakeh Steel co supply policy at IME is strange
and full of ambiguities which has made market participants more confused.
Oxin Steel co HRP
was not offered by beginning of the week as market was waiting for Khouzestan Steel
co slab offer at IME. Demand for slab was 198600 tones but the mill sold only
30,000 tones at base price of USD 604 /mt. By Sunday Oxin co HRP 10-40 mm was
USD 767 /mt then became upward till Wednesday which reached USD 786 /mt ex-work
including VAT. Consumption level for HRP has declined compared to a year ago
and the mill is trying to increase production capacity which would be ended in
lower prices.
CRC market was
upward for almost all sizes. Import cargoes are leaving the market and
Mobarakeh Steel co is just the leader. Average price of thickness 0.50-2 mm
started the week at USD 948 /mt and lower supply of CIS origin CRC made prices
reach USD 1002 /mt by Wednesday. But upward trend made many traders leaving the
market which this would make prices downward in coming days.
HDG price was upward
from USD 1039 /mt to USD 1067 /mt for thickness 0.40-2mm. Higher CRC price made
HDG upward. By Monday some sellers
stopped supplying which made prices upward.
Official Ex-rate (CBI):
Rials 42,625/1USD
July 02, 2018
----------------------------------------------
Iran Steel News
Bulletin