Billet
Billet price was almost stable during last week
in Iran. Average price just changed a little from USD 330/mt to USD 329/mt
ex-work including 9% VAT. There is an ambiguity in billet market at the moment,
on one hand, lower consumption due to religious holidays, made demand for
billet declining and some insiders have been expecting a downward trend. But on
the other hand, as neighboring countries market would be active as Holidays
have ended, demand for Iranian billet will increase and prices will normally rise.
This is if the price of DRI and scrap stay unchanged, otherwise billet price
rise will be short-term and slight.
Iron ore prices in China have fallen to a
five-month low, which will reduce iron ore exporters' profit margins. On the
other hand, government efforts to control prices will lead to lower raw
material prices.
Long
Products
Average price of debar,
which was USD 377/mt last Saturday, dropped to USD 376 /mt on Wednesday, which
was almost unchanged during the week due to market closure for Holidays. Billet
supply, on the other hand, had lowered the outlook for debar market every day.
It has been said recently by authorities that according to new regulations any mill
that wants to export, has to supply its product at IME ( Iran Mercantile
Exchange, so it should be expected that exports of debar will be reduced as
many steel mills are not eligible at IME but are exporting at the moment. This
can quickly affect the domestic market and cause a sharp drop in prices, with a
consequent impact on the entire steel market chain.
Price of I-beam
also declined slightly over the past week, with the average price of sizes 14,
16 and 18 in Isfahan falling from USD 379/mt to USD 377/mt ex-work including 9%
VAT.
Flat
Products
HRC 2 mm thickness
declined during last week in Iran from USD 60500 /mt ex-work Isfahan to USD 534/mt
by the weekend. In Ahwaz, on Saturday it was USD 530/mt and decreased to USD 521/mt
ex-work including VAT by the weekend. Market closures for Holidays made prices
decline.
HRC 3 to 15mm
thickness of Mobarkeh Steel co in Isfahan, which was priced at USD 503/mt on
Saturday, fell to USD 501/mt by the weekend. Oxin co HRP 10 to 40mm thickness
products were traded at an average of USD 473/mt on Saturday, which fell to USD
472/mt ex-work including 9% VAT by end of the week.
CRC thickness 0.40-2
mm which was USD 647/mt on Saturday, was almost unchanged by end of the week.
Its price may go up as demand will increases by consumer mills becoming more
active.
HDG price continued
to fall under the pressure of falling ex-rate, down from USD 737/mt for 0.40 to
1.5 mm thicknesses on Saturday to USD 728/mt on Wednesday. Downward HRC price
also affected HDG price decline.
Some market insiders
believe that Iran domestic and export market will be active in coming days, as
there is only one week left until the beginning of Month of Muharram and market
will become quiet again.
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CBI
weekly average ex-rate for Steel Products (SANA): Rials 112.260 / 1USD
26 Aug,
2019
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Iran
Steel News Bulletin