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Iran steel market Trend in Week 04th , 2019

Iran steel market Trend in Week 04th   , 2019

Billet

Billet market was upward during last week in Iran. By Wednesday, average price rose by USD 6/mt  to USD 395 /mt ex-work including 9% VAT.

Khuzestan Steel co managed to sell 50,000 tons of its billet at base price of USD 363 /mt ex-work excluding VAT at IME while its initial offer price was USD 358/mt.

Market participants agrees that if the sale was in cash, price would not change, and the volume of sale would not be this much. Billet market is faced with liquidity problem.

Mills who produce billet with DRI have lower production cost, but due to long products market downturns, their productivity is low. Besides, others who use scrap for billet production have higher costs. Export has also declined, therefore billet producers are faced with both domestic and export demand shortage. Many market players believe billet market won’t change significantly till end of current Iranian year ( 20 March 2019) and any upward trend won’t be more than USD 12.5 /mt.

 

Long products

After two weeks of quiet activity due to cold weather, long products market became a little active and average price of debar rose from USD 447/mt to USD 457/mt ex-work including 9% VAT.

Reasons behind this activity include:

A: Limited billet supply

B: Lower sales level and liquidity problems has forced mills to reduce inventory levels, therefore their delivery time has around two days up to one-week delay.

C: Traders still have inventory, which is why they begin negotiations with the arrival of a demand, and then the market rolls back.

D: Khuzestan Steel co billet sale at IME made debar market active too.

Many market participants predict that with supply limitation, the price range of debar would be around USD 425 - 463/mt till end of the year in Iran. Actually market would be active around one month which would make buyers more cautious.

I-beam price also improved from USD 534/mt to USD 542/mt ex-work including 9% VAT.

 

Flat products

HRC 2 mm thickness was upward during last week in Iran, Saba Steel co product price improved from USD 570.5/mt ex-work including 9% VAT to USD 590.5/mt. Ahwaz Rolling and Tubing co product was in limited supply and its price rose from USD 544/mt to USD 563/mt.

As Khuzestan Steel co billet price rose at IME, the mill increased its slab price, but this price increase would be temporary as other mills have high inventory level and didn’t increase prices.

Mobarakeh steel co products with thickness of 3 to 15 mm, rose from USD 552/mt to USD 567/mt due to increase in demand and price of this commodity at IME.  Supply of Mobarakeh steel co products is limited and buyers can not easily buy, if needed, a thousand-tone of thickness 10 to 15 mm.

Oxin co HRP was faced with price increases in the absence of Kavian co in the market and high demand of thicknesses 20-30.

 

CRC price declined during last week in Iran. Lack of demand remains the main trouble of this product. Its average price was USD 783/mt by Saturday, which reached USD 780/mt by end of the week.

Despite increase of HDG price at IME, retail market was in an almost stable position. Its price dropped from USD 922/mt to USD 916/mt,  demand for this product is currently equal to its supply.

 

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CBI weekly average ex-rate for Steel Products (SANA):  Rials 79,923/ 1USD

Jan 28, 2019

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Iran Steel News Bulletin

 

Jan 28, 2019 13:28
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