Billet
At the beginning of last week Billet size 150×150 mm was priced at $ 703 /mt fot Anzali port. By Monday it started decreasing and at the end of the week billet sizes 100 ×100 and 150×150 mm were offered at around $ 684 / mt, but there was no transaction in the market. Iranian traders bought billet at price of $ 450-480 /mt cfr North Iranian ports before January. Most part of theses parcels deliveries were for January and had been blocked at Astarakhan port because of ice condition. But as weather is warming, they are coming to Iran market these days. More than 450.000 tones billet reached Iran ports in March.Therefore billet price should drop as availability will increase in next 2 weeks. If sections price especially debar picks up, billet price won''t decrease. After about next 3 weeks, billet with price of $ 600 / mt will arrive Iran market. This shipments cost price would be higher than available stocks. Recently foreign traders are offering billet at price of $ 660-680 /mt cfr north Iranian ports. Its cost price for Iranian buyers will be $ 713 /mt fot after custom duty and VAT.
Long products
Long products were being offered at high prices in first days of last week. IPE and Debar offer prices were up to $ 790 / mt. But prices started falling on Monday afternoon. Tuesday was the worst as prices reached the bottom. Equal Angle and UNP prices were almost unchanged but debar price dropped to around $ 760/ mt. On Wednesday, Equal Angle offered price decreased about $ 5 /mt and UNP around $ 11/mt and IPE price was down around $ 21 /mt. At the end of the day prices became stable and most sellers stopped offering.
World long products markets have seen sharp price increases from January 2010. Debar import price to be delivered to Iranian ports is at least $ 740 / mt, IPE around $ 760 / mt and UNP about $ 770 / mt cfr Iranian ports. As a result, theses products cost price have increased and it''s unlikely to expect them fall in near future. Last week every one was waiting for Isfahan Steel plant new offers to set the market base prices but it didn''t happen. Market mentality is that long products prices will increase in Iran as billet price is increasing globally. If not, its availability will be too limited in coming months.
Flat products
Last week Iran flats market start working last week with a very good sentiment. Offer price of HRC 2.00 mm was prevailing around $ 703 / mt fot, at Anzali port, and HRC 2.5 -10 mm around $ 713-733 /mt. From Sunday especially due to falling price of HRC 2.00 mm, flats market was dull. Every one hoped that if Mobarake Steel start offering in Tehran Metal Exchange on Monday , the situation would be better. As HRC export offer price of this plant is more than $ 700 / mt fob Bandar Abbas, It was expected that its price will increase at least $51 / mt .But Mobarake Steel didn''t offer in Tehran Exchange and market stagnancy resulted in falling prices on Tuesday and Wednesday. At the end of the week, offer price of HRC 3.00 – 15.00 mm prevailed around $ 703- 733 / mt. CRC and HDG prices decreased around $ 11 / mt . CRC availability was so limited. Liquidity shortage of some traders made them reduce prices. As a result, price of HRC 2.00 mm dropped to last year''s price of $ 633 / mt at Anzali. Availability of Imported materials with price of under $ 600 / mt will be finished till next one or two weeks. After that prices will pick up.
Recent import offer price of different flat products is as follow. For HRC 2.00 mm about $750 / mt, HRP around $ 720-740 / mt, CRC about $ 830 / mt and HDG around $ 1050- 1100 / mt cfr Iranian ports . Therefore, cost price of HRC should be at least $ 803 / mt, CRC not under $ 962 /mt and HDG shouldn''t be lower than $ 1255 / mt included Vat and custom duty. Market is not still running, mostly due to lack of supply by Mobarake Steel complex.
Iran steel service center