Billet
Billet price was downward during last week
in Iran. Average domestic billet size 150 mm declined from USD 394/mt ex-work
including 9% VAT last Saturday to USD 384/mt by Wednesday. More discount was
available if someone was real buyer. Khouzestan Steel co offered its billet at
USD 392 /mt ex-work including 9% VAT but there was no demand at this price. The
mill sold its billet at base price of USD 353/mt ex-work excluding 9% VAT, but
previous weeks’ deals were done at USD 369/mt.
This downward trend had two main reasons:
1- Seasonal market sadness, market will be
closed in coming days due to Ramadan ending and Eid al- Fitr.
2- Down ward trend in ex-rate and some market
chatters about possibilities of negotiations with USA.
At the moment Iran steel market prefer wait
and see what will happen next weeks.
Long Products
Long products were downward. Debar
average price dropped from USD 445 /mt to USD 443/mt ex-work including 9% VAT. Average I-beam price also declined from USD 425/mt
to USD 419/mt ex-work including 9% VAT. Steel market was downward as explained
in billet section. But another point is that at the moment debar supply level
is high in Iran but billet is limited. Besides, demand is very limited in both
domestic and export market due to Holy month of Ramadan. Some market insiders
expect after the Holy month and rising export demand of neighbor countries like
Iraq, prices become upward.
Flat Products
HRC 2 mm thickness
started last week at USD 609/mt ex-work Esfahan including 9% VAT and USD 559/mt
ex-work Ahwaz including 9% VAT. During the week prices were downward as reached
USD 595/mt ex-work Esfahan and USD 550/mt ex-work Ahwaz.
Prices for both mills have reached the
bottom. At the moment HRC available in the market has been produced by the slab
at USD 388 /mt bought three months ago. Besides, three months ago Mobarakeh
Steel co HRC was sold at IME at high tonnages at base price of USD 425/mt but
today base prices have changed completely. Besides export of pipe and profile
has almost stopped due to Ramadan market sadness. When export level improves after
the Holy month, HRC price will also increase. For thicknesses 3-15 mm price
dropped from USD 596/mt to USD 585/mt ex-work including 9% VAT. Average price
for Oxin co HRP was down from USD 572/mt to USD 565/mt ex-work including 9% VAT.
Kavian co HRP also declined from USD 563 /mt to USD 549/mt by average for
thicknesses 12-30 mm. Some traders which had available inventory from last
cheap purchases, have declined price due to market depression. Prices are
expected to increase after these cheap inventory levels finish.
CRC price was also downward from USD 731.5/mt to USD 721/mt ex-work including 9% VAT. Demand is limited and also market inventory
is low.
HDG market also was downward like other steel products in Iran. Average
price of thicknesses 0.40-1.5 mm decreased from USD 909/mt to USD 885/mt ex-work
including 9% VAT. Lower ex-rate had a significant effect on downward trend of
HDG.
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CBI
weekly average ex-rate for Steel Products (SANA): Rials 110,863 / 1USD
03 June,
2019
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Iran
Steel News Bulletin