Billet
Billet price was
downward during last week in Iran. Average price of billet size 125 mm and 150
mm started the week at USD 859.5 /mt ex-work including 9% VAT and finished the
week at USD 911/mt ex-work including 9% VAT. Main reason behind upward trend
was increase of base price at IME ( Iran Mercantile Exchange). Arfaa Steel co
offered its billet last Saturday at IME at base price of USD 676/mt. As demand
level increased to 49500 tones, final price reached USD 788/mt ex-work
excluding 9% VAT.
There were two main
reasons behind higher demand at IME:
1- Base price was too
low and made buyers more interested.
2- Arfaa Steel co do not
have problems of Khouzestan Steel co and customers trust the mill easier, this
has made demand level improved.
Last week, ex-rate
improved and made long products prices higher, this affected billet price
positively. But this week if ex-rate remain stable, would make market quiet as
we will have a long weekend due to religious Holidays and everything would depend
on next supply of Khouzestan Steel co at IME.
Long products
Average price of debar
diameter 8-32 mm started week 44 at USD 1033/mt ex-work including 9% VAT last
Saturday. By Sunday average price dropped to USD 1031/mt. With ex-rate
improvement, price again started rising till USD 1061/mt ex-work including 9%
VAT. Main
reason behind higher debar price besides higher ex-rate and rising billet price
was inflation expectations. Market expectation for debar minimum and maximum
price is between USD 1000 – 1095 /mt ex-work
including 9% VAT. If debar price drop to lower than USD 1000/mt, billet price
should decrease to USD 881/mt ex-work including 9% VAT and DRI price lower than
base price of USD 405/mt ex-work excluding 9% VAT and pellet lower than USD 190/mt
ex-work excluding 9% VAT.
But pellet export level is
helping its price improving, therefore, billet price of lower than USD 881/mt
and debar of lower than USD 1000/mt seems unlikely.
Average price of I-beam
size 14 & 18 mm started the week at USD 1106/mt and ended in USD 1111/mt ex-work
Esfahan including 9% VAT. I-beam market is being controlled by Esfahan Steel co
and do not have significant fluctuations.
Flat products
Imported HRC 2 mm thickness was around
USD 1405/mt on truck in Anzali including
9% VAT and custom duties by last Saturday. Import market inventory is too much
limited and buyers are more interested in domestic products. Mobarakeh Steel co
offered its HRC thickness under 6 mm at base price of USD 937/mt and succeeded
to end the deal at USD 1063/mt base price. This price is not much different
from retail market after 9% VAT
Oxin co HRP thickness 10-40 mm started
the week downward as some sizes reached around USD 952/mt ex-work including 9% VAT or lower. The downward
trend didn’t stayed long as by last Monday it was sold at IME by private sector
at base price of USD 940/mt ex-work excluding 9%
VAT but the deal was canceled and just 500 tons was sold at USD 780/mt. market
was in Holiday by Tuesday which helped it became calm. But the point is that
Oxin co HRP based on its production cost should be at least USD 1024/mt to be
profitable for the sellers. Kavian co HRP was also available in the retail
market which was cheaper than Oxin co products and customers were more
interested in it.
CRC market was almost
unchanged as price started the week at USD 1681.5/mt and ended it at USD 1675.5/mt.
Import products are almost unavailable in the market and Mobarakeh Steel co is
the only market leader.
HDG market had a stable
trend and by Wednesday last week just improved by USD 12/mt to reach USD 2021/mt
ex-work including 9% VAT. Mobarakeh Steel co HDG products is limited in retail
market but Seven Diamond co products for almost all sizes is available.
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Official
Ex-rate (CBI):
Rials 42,000/1USD
Nov 05,
2018
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Iran
Steel News Bulletin