Billet
Billet price was almost flat last week.
On Sunday, the average price was USD 349 /mt ex-work including 9% VAT for sizes
125 and 150mm, which reached USD 350/mt by the end of the week. Everyone were expecting
improvement of billet price last week, but price stability was affected by two
factors:
Firstly, this week’s Holidays that
actually stopped production and market activities.
Secondly, new regulations for selling billet
to re-rollers which has reduced billet buyers significantly, but low
availability of billet made market situation competitive.
Long Products
Long products market has been showing signs of price change since
last week as prices have fallen to the bottom and cannot be reduced more. Average
price of debar on last Sunday was USD 388 /mt, then reached USD 395/mt ex-work
including 9% VAT by the end of the week. As we have religious mourning Holidays
this week price changes were limited. Market participants hope prices will
improve. Price of I- beam also recovered from an average of USD446/mt to USD455/mt
ex-work including 9% VAT by the end of the week while supply of size 14 and 18 was
severely restricted. Most insiders expect Isfahan Steel co policy of limited supply
to continue in the coming weeks.
Flat Products
HRC 2 mm thickness started the week at
USD 480/mt, fluctuated on Monday and Tuesday but rose on Wednesday and reached USD
480/mt again. Ahwaz Rolling and Pipe co
product was almost stable at around USD 455 /mt. Guilan co product also
fluctuated like Isfahan Mobarakeh Steel co HRC but finished the week at USD465/mt
like beginning of the week.
Release of pipe and profile exports could
be a welcoming news to the sector, though political issues in neighboring
countries that buy our products will affect export market.
HRC 3 to 15 mm thickness in Isfahan
market was faced with sellers' resistance to drop prices, so Sunday's price was
USD 506/mt and finished the week at USD 508/mt. Increasing price of thicknesses
below 6 mm was the main cause of this improvement. Oxin co HRP thickness 10 to
40 mm on Sunday traded at an average of USD 490/mt but reached USD 491.5/mt by
the end of the week. The mill would have maintenance plan for 2 weeks,
therefore upward prices won’t be unlikely. The mill announced an export auction
for 10,000 MTNS HRP by last week for the first time. With improvement in export
market activities, limited domestic supply would be possible in the future.
Kavian co HRP did not change
significantly and remained unchanged at around USD 482/mt ex-work including
VAT.
CRC price dropped from USD 650/mt to USD 646
/mt. CRC demand is still weak and the upcoming holidays will not allow it to
improve.
HDG price was almost stable from USD 691
/mt to USD 693/mt ex-work including VAT.
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CBI
weekly average ex-rate for Steel Products (SANA): Rials 107.599 / 1USD
28 Oct,
2019
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Iran Steel News Bulletin