Billet
Average billet price was upward during last
week in Iran domestic market. Its price for size 150 X 150 mm rose from USD 435 /mt
to USD 454/mt ex-work including 9% VAT. Main reason behind upward trend was
higher ex-rate and market expectations. But after releasing news
about USA ending sanction exemptions for major importers of oil from Iran,
domestic steel market became more cautious.
Possibility of downward trends in prices, encouraged
Khouzestan steel co to supply billet with 90 days LC payment.
Therefore, had a success of absorbing 130,000 MTNS demand through offering
30,000 MTNS weekly supply at IME.
Billet market is not predictable
currently as it is not clear that how much sanctions would affect Iran steel
export. Iranian mills have presold their products till end of May,2019.
Given the billet price
downward trend in global markets and US sanctions against Iran, market players
mostly expect billet supply level in Iran domestic market increase in future.
Long Products
Long products experienced an unstable week in
Iran but generally prices were upward. Average price of debar improved a little
from USA 521/mt to USD 527 /mt ex-work including 9% VAT. Average price of
I-beam sizes 14-18 mm which was offered by Esfahan Steel co at USD 494 /mt by
last Saturday, reached USD 497 /mt ex-work including 9% VAT by end of the week.
But generally, demand was limited and traders
were not eager to buy from mills which is due to market uncertainties.
On one hand, export market is facing difficulties
and troubles and at the other side it is expected that reconstruction of flood
hit areas helps improving long products demand in coming months. All these
events will show its affects more clearly after Holy Month of Ramadan which
will begin next Monday.
Flat Products
By last week, Mobarakeh Steel co sold its HRC
at IME ( Iran Mercantile exchange) with USD 204 /mt higher than last levels.
This transaction was finally canceled but it gave market insiders some signals
for possible upward trend in coming weeks. Actually insiders expect HRC price at
IME reach at least USD 645 /mt ex-work including 9% VAT in coming one or two
weeks. Therefore, average price for thicknesses 6-15 mm HRC from Mobarakeh Steel co
rose from USD 664 /mt to USD 678/mt in retail market including 9% VAT. It is
expected that retail market price for HRC increase to around USD753/mt in near
future.
OXin co HRP was almost stable during the week
due to higher supply level. It was USD 643 /mt by last Saturday, stayed unchanged
till Tuesday, then improved a little by Wednesday to USD 646 /mt ex-work
including 9% VAT. As HRP sellers are in the market looking for buyers, it is
unlikely that upward trend continues.
Kavian Co HRC thicknesses 12-25 mm were available
last week in domestic market and average price rose marginally from USD 627 /mt
to USD 631 /mt ex-work including 9% VAT.
CRC price didn’t fluctuate during the week and
stayed stable at around USD 807 /mt ex-work including 9% VAT. CRC market is expected
to stay unchanged and won’t improve in coming weeks as demand is scarce.
HDG price was almost stable and didn’t
fluctuate seriously. Average price of thicknesses 0.40-1.5 mm rose from USD 1004/mt
to USD 1015 /mt ex-work including 9% VAT by end of the week.
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CBI weekly average ex-rate for Steel Products
(SANA): Rials 92,943/ 1USD
29 April, 2019
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Iran Steel News Bulletin