Iran steel market Trend in Week 48th
,
2018
Billet
Price of domestic billet
size 125 and 150 mm declined during last week in Iran from USD 886/mt to USD 838/mt ex-work including 9% VAT. By Wednesday,
market was completely quiet and DRI was not transacted at IME ( Iran Mercantile
Exchange). Khouzestan Steel co billet dropped from USD 830 /mt a week ago to
USD 771/mt ex-work including 9% VAT.
Main reason behind
downward trend of billet in Iran was the decline of ex-rate in free market to
lower that Rials110,000 /1 USD. This trend affected long products demand negatively
too. Lower long products prices will decline billet demand too.
Long products
Long products were
downward during last week in Iran as expected. Average price of debar diameter 8-32
mm declined from USD 1015/mt to USD 988/mt ex-work including 9% VAT. Average
price of I-beam size 14,16,18 from Esfahan Steel co also declined from USD 1065
/mt to USD 1044 /mt ex-work including 9% VAT. Khorasan steel co debar basket
also declined from USD 903/mt to USD 884.5 /mt. Esfahan Steel co debar diameter
14 mm rose from USD 876 /mt to USD 890 /mt ex-work including 9% VAT. Size 16 mm
also experienced the same.
In retail market
competition between producers was strong and this made downward trend stronger
which is expected to continue in coming days.
Flat products
Domestic HRC 2 mm
thickness dropped from USD 1374/mt to USD 1333/mt ex-work Esfahan including 9%
VAT. Ahwaz Rolling and Pipe co product also dropped from USD 1309.5/mt to USD
1286/mt ex-work including 9% VAT. Mobarakeh Steel co product thicknesses 3-12
mm improved a little during the week from USD 1049/mt to USD 1053/mt ex-work including
9% VAT due to limited supply of thicknesses 6-12 mm. For thicknesses higher
than 6 mm, Mobarakeh Steel co base price improved by USD 5/mt but sizes lower
than 6 mm was not interested for buyers and declined by USD 0.23 /mt.
Market’s wait and see
policy will gradually effect on Mobarakeh Steel co pricing policy. The mill
will resist against downward trend as market leader, but it would resist till
its products costs let.
Kavian co HRP thickness
10-30 mm was around USD 976/mt and market was in downward trend. Oxin co HRP
thickness 10-40 mm was stable at around USD 988/mt as price has reached the
bottom.
CRC price was downward as
price of thicknesses 0.40-2.5 mm dropped from USD 1772/mt to USD 1742/mt ex-work
including 9% VAT. Demand level is low and investors are not interested in this market
any more.
HDG market was downward
mostly for Seven Diamond co products as average price of thicknesses 0.45 -1.5
mm dropped from USD 2114/mt to USD 2081/mt ex-work including 9% VAT. As HRC
market is downward, it would affect HDG price too.
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Official
Ex-rate (CBI):
Rials 42,000/1USD
Dec 03, 2018
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Iran
Steel News Bulletin