Billet
Average
billet price remained stable during last week in Iran at around USD 359/mt
ex-work including 9% VAT. This price stability was also seen in Iran Mercantile
Exchange too. Some transactions at IME experienced a very limited price
reduction for example around USD 6.5/mt for Chador Malou billet, while
Khuzestan steel co product price rose by around USD 1.4/mt.
Political
tensions in the neighbor countries has made debar export market quiet while
Iran billet demand in export market still persists. Therefore, price was almost
stable. But in retail market, billet price improved a little by USD 9.4/mt due
to higher scrap price and limited DRI supply.
Long
Products
Price of 8 to 32 mm diameter debar increased from USD 404 /mt on
Saturday to USD 407 /mt ex-work including 9% VAT. Price of I-beam sizes 14- to
18 changed from USD 483 /mt to USD 482/mt by Monday. Debar price improved and
I-beam price declined but actually both markets are looking for stability. The
increase in the price of debar is due to the severe restriction of billet
supply and its price rise, which is why the production of debar has decreased
and this trend will continue as long as profit margin of debar producers is in
line with the purchase price of billet.
But in the case of I-beam, the rising price of I-beam from the base
price of USD 376/mt to USD 470/mt has frightened traders and they prefer to decrease
their inventory level.
Flat
Products
HRC 2 mm thickness
was USD 501/mt ex-work Isfahan on Saturday which reached USD 506/mt by Tuesday.
Ahwaz rolling and pipe co production price increased from USD 479 /mt to USD 486
/mt. while Gilan co HRC price also rose from USD 484/mt to USD 489 /mt.
Oxin co HRP thickness
10 to 40 mm, decreased from USD 505/mt to USD 502/mt on Monday, but due to
supply restriction increased to USD 504.5/mt. Kavian co HRP was traded at a base
price of USD 499/mt due to limited supply level. At the moment, profit margin
of HRC is very low due to high price of slab, so investors have little
incentive to enter this sector.
CRC thickness 0.40-2
mm on last Saturday was USD 651 /mt then reached USD 660/mt on Tuesday as a
result of higher base prices at IME.
HDG 0.40 to 1.5mm
thickness, which was priced at USD 704/mt, began to rise on Sunday and reached USD
718/mt by the end of the week due to the rising price of HRC.
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CBI
weekly average ex-rate for Steel Products (SANA): Rials 106.381 / 1USD
11 Nov,
2019
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Iran
Steel News Bulletin