Billet
Billet price was stable during last week in Iran mainly due
to mid-week Holidays but from the very beginning of the week, supply shortage
was severe. Average price changed from USD 354/mt to USD 355/mt ex-work
including 9% VAT by the end of the week, and weakness of supply was evident.
The main reason for the restriction of supply is due to the Holidays of the
previous weeks, the restriction of DRI transportation and market uncertainty.
Actually, this week market would start its activity after around 20 days of
almost stoppage. There are two views in the market:
At first glance it is believed that prices will rise because
demand will enter the market at once and this will aggravate the price rise
since limited supply of DRI is serious. This view says that limited DRI
availability will raise billet price by up to USD 9/mt.
The second view believes that billet price is likely to
fluctuate, but since demand is limited, price increases will be short lived. DRI
supply will come back to its normal trend this week, therefore any upward trend
in price would stays just for a week in the market.
Long Products
Long products prices were almost unchanged. Average price of
debar on Saturday was USDS 399/mt and reached USD 403/mt by the weekend. The
reason for the limited increase of debar is that:
A. Limited supply of debar due to Holidays and lack of
deliveries by trailers in the west and south of the country.
(B) Decrease in the supply of billet and its lower
production, which was also related to
road traffic limitations.
I-beam price also fluctuated a little during last week from USD
447/mt to USD 456/mt till Monday but on Wednesday the supply increased and the
price dropped to USD 451 /mt. The surge in supply was driven by the uptake of
liquidity and export concerns, which prompted traders to increase supply.
However, the probability of a price increase for debar and I-beams
is low as the government is trying to hold them stable.
Flat Products
HRC 2 mm thickness was traded in Isfahan market at USD 485/mt on Saturday which
reached USD 495/mt by the weekend. The absence of many traders has caused this
price increase. Price in Ahwaz market was stable throughout the week at around
USD 470/mt, while supply volume was low.
The average price of 4 to 15mm thickness HRC in
Isfahan on Saturday was USD 514/mt but due to market closure of Holidays and
lowering of supply, until Wednesday the price reached USD 517/mt.
Oxin co HRP had stability and fluctuated around USD 501/mt.
Market closure due to Holidays helped maintenance plan of the mill. The same trend
was seen for Kavian co HRP while facing supply constraints.
CRC price fell from USD 653/mt to USD 650/mt. The main reason for the drop was lack of
demand due to Holidays. HDG price remained stable at around USD 702/mt.
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CBI weekly average ex-rate for Steel Products (SANA):
Rials 106.433 / 1USD
04 Nov, 2019
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Iran Steel News Bulletin