Billet
Average price of billet
sizes 125 mm and 150 mm started the week at USD 922/mt and reached USD 892.5
/mt by last Wednesday. IMIDRO export statistics shows that during last 7 months billet and
slab export level of its subsidiaries declined 17% compared to the same period
of last year. Khouzestab Steel co export level as the biggest exporter has
declined 143,000 tones during this period. First consequence of lower export
level would be higher domestic supply.
As
ex-rate in open market is declining, DRI and therefore billet price would also
continue declining. Besides long products are also downward. By last Wednesday,
private mills were offering billet at USD 869 /mt ex-work including VAT but
buyers were resisting as long products were declining.
Long products
Long products were
downward during last week in Iran due to downward ex-rate and the way of supply
and sells at IME( Iran Mercantile Exchange). Different mills sold their I-beam
and debar at IME, with the buyers mainly small traders which mostly pay
attention to their money return not profitability. As their investment level is
low, they prefer decline their profit level but increase number of deals to
increase completion in the market. This competition will make prices lower.
Flat products
Imported HRC 2 mm
thickness was downward during last week in Iran but domestic product from
Mobarakeh Steel co dropped by USD 48/mt to USD 1381/mt ex-work including 9%
VAT. Other producers’ HRC was also downward due to market depression and lower
ex-rate. Mobarakeh steel co HRC thickness 3-15 mm was almost stable due to
supply controls. Kavian co HRP thickness 10-40 mm was available in the market
and Oxin co HRP price also dropped by around USD 19 /mt.
CRC market was quiet and
unchanged. Supply- demand is balanced for almost all sizes except for size 0.60
mm which there is a large price gap for it.
HDG was the only steel
product with upward trend in price due to upward trend in price of zinc, which
may become downward in near future as ex-rate has been declining currently.
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Official
Ex-rate (CBI):
Rials 42,000/1USD
Nov 19,
2018
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Iran
Steel News Bulletin