Billet
As expected, billet
price was downward during last week in Iran. Lack of buying interest made
billet price decline as average price of sizes 125 and 150 mm dropped from USD 757/mt
to USD 656 /mt ex-work including 9% VAT. Actually market participants are
waiting for Khouzestan Steel co new offer price, therefore, DRI offer at IME (
Iran Mercantile Exchange) at base price of USD 378 /mt ex-work excluding 9% VAT
had no buyer. Based on current price of billet, DRI price should be lower than
USD 309 /mt. If current rumors about new price of USD 681 /mt for Khouzestan
Steel co billet becomes true, DRI price would drop to around USD 286 /mt.
Long products
Long products prices
experienced severe declines during last week in Iran. Everybody, especially
mills were in a hurry to sell, therefore price of debar diameter 8-32 mm
dropped from USD 924/mt to USD 862/mt ex-work including 9% VAT and this downward
trend will continue.
I-beam size 14,16,18
also declined from USD 983 /mt to USD 955.5/mt ex-work including 9% VAT.
Ex-rate in free market
has dropped around 23% within a month and average debar price in domestic
market has dropped by around 19% within the same period. Therefore, based on
currency market changes which influence steel market, debar price has still
space for more declines. But it should also be noted that at the moment two
main factors of market expectations and government policies effect on prices
too.
Billet is downward,
though, long products buyers believe it is not purchase time and should wait.
Market participants expect billet price to reach the bottom of USD 595 /mt
ex-work excluding 9% VAT or lower.
Flat products
HRC 2 mm thickness
started week 50 in Iran domestic market at USD 1214 /mt ex-work Esfahan
including 9% VAT and finished the week at USD 1167 /mt. HRC 2 mm thickness of
Rolling and Pipe co also dropped by the same to USD 1048/mt ex-work including
9% VAT. Some rumors about declining base
price of slab from USD 755/mt to USD 709.5 /mt with lack of demand made prices
downward.
Thicknesses 3-15 mm were
also downward as average price dropped from USD 1037/mt to USD 1009/mt ex-work
including 9% VAT. Oxin co HRP thicknesses 12-40 mm also decreased from USD 955/mt
to USD 939/mt. Some sizes especially 20 mm are faced with lack of inventory and
sizes 20-40 mm had the most declines as by Thursday reached USD 905/mt. Kavian
co products were also downward from USD 921 /mt to USD 893 /mt ex-work
including 9% VAT.
CRC market was also downward.
Mobarakeh Steel co resistance
at IME didn’t work and lack of demand was the winner factor and made prices
downward. Average price of sizes 0.40-2.5 mm dropped from USD 1654/mt to USD 1582/mt
ex-work including 9% VAT.
HDG market was also
downward as price of thicknesses 0.45-1.5 mm decreased from USD 2032.5/mt to
USD 1870/mt ex-work including 9% VAT. Lack of demand is serious and may make
prices reach lower than USD 1667 /mt. Actually the main reason behind downward
HDG price was downward price of zinc.
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Official
Ex-rate (CBI):
Rials 42,000/1USD
Dec 17,
2018
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Iran
Steel News Bulletin