Billet
By beginning
of last week billet price started dropping in Iran domestic market as sizes 125
and 150 mm declined from USD 800/mt to USD 747/mt ex-work including 9% VAT. Some
buyers were bidding lower than USD 714 /mt. Nobody was interested in buying and
market was in waiting mood.
Currency
market is quiet and also Chinese and Russian origin billet is being more
competitive in the countries which traditionally buy from Iran. Foreign buyers
prefer dealing in small tonnage and ready to be delivered cargoes due to
nearing Christmas time which is not in line with Iran export market situation.
Long products
Long products
experienced a free fall during last week in Iran as average price of sizes 8-32
mm dropped from USD 969 /mt to USD 929 /mt ex-work including 9% VAT.
Lack
of demand for billet at IME made long products market sadness more. Mills are
facing with liquidity shortage and lack of demand. Iran debar export level has
declined significantly currently and also domestic demand has dropped due to
cold weather. Some negative views expect debar price declined to USD 714 /mt ex-work
including 9% VAT. If so, billet would reach USD 595/mt and DRI to USD 286/mt
and lower. Some others believe that debar price has reached the bottom and will
start rising in coming days.
Flat products
HRC 2 mm thickness
started the week in Iran at USD 1298 /mt ex-work Esfahan including 9% VAT and USD 1262/mt ex-work Ahwaz
including 9% VAT. They declined to respectively USD 1236/mt and USD 1179/mt by
end of the week. Average price of thickness 3-15 mm also dropped from USD 1030/mt
to USD 994/mt ex-work including 9% VAT. Oxin co HRP sizes 10-40 mm also
decreased from USD 979/mt to USD 964.5/mt ex-work including 9% VAT.
CRC
market was also downward and demand level is at the minimum. Average price for
thickness 0.40-2.5 mm declined from USD 1708/mt to USD 1682/mt ex-work
including 9% VAT.
HDG
price was also downward like other steel products with its price declining from
USD 2087/mt to USD 2047/mt ex-work including 9% VAT. The downward trend is
expected to continue.
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Official
Ex-rate (CBI):
Rials 42,000/1USD
Dec 10,
2018
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Iran
Steel News Bulletin