Billet
Billet
price was upward during last week in Iran. It improved from USD 359 /mt to USD 369/mt
ex-work including 9% VAT on Wednesday. This trend was predictable because supply
of DRI and scrap remains limited and exchange rate was upward.
Due
to the cold weather, the problem of DRI and scrap supply won’t be easily
satisfied. But in the case of currency rate, it is usual in January because due
to New Year Holidays abroad currency transfer is not easily done.
Another
issue to keep in mind is the approaching of December 15th , deadline
for US-China trade war that will disrupt international markets if no agreement
is reached. If the deal succeeds, Iran's steel export market will remain active,
otherwise it will have problem in the first quarter of next year.
Long
Products
The upward trend in long
products prices last week was quite predictable as billet supply was limited.
The average price improved from USD 406/mt to USD 411/mt ex-work
including 9% VAT.
Export to Iraq has been currently limited, however, the rise in ex-rate affected
the market trend. However, the issue of providing liquidity for buying raw
materials is becoming more severe for re-rollers. I-beam was also upward like
debar and the average price of sizes 14 to 18 in Esfahan ranged from USD 471/mt
on Saturday to USD 527/mt on Wednesday. The limited supply of beams at IME
indicates the scarcity of this commodity, although Esfahan Steel co tries to
manage I-beam market.
Flat
Products
HRC 2 mm thickness
in Esfahan market rose from USD 504 /mt to USD 531 /mt ex-work including 9% VAT. Ahwaz product was also upward from USD 495
/mt to USD 513/mt ex-work including 9% VAT
by end of the week. Due to limited slab supply from Hormozgan Steel co, upward
trend of HRC is expected to continue. Mobarakeh Steel co HRC thickness 3-15 mm
were also up which was expected. Its average price rose from USD 538/mt to USD 551/mt ex-work including 9% VAT.
Oxin co HRP price recovered
from an average of USD 518/mt to USD 528/mt ex-work
including VAT. There is still problem with supply of grade ST-52 in the
market, so its price difference with grade ST-37 has reached over USD 275 /mt.
It is unclear whether this is a mill policy or is because of export.
Kavian co HRP also
experienced the same and average price of sizes 15 to 25 mm, which was USD 496/mt
on Saturday, reached USD 505/mt by the weekend.
CRC experienced the
highest price increase, from an average of USD 641/mt to USD 703/mt ex-work including 9% VAT. The reason for this trend
was higher price at IME, but as the market was waiting for the price to rise,
on Monday no one was a seller.
HDG price was
fluctuating. The average rate on Saturday was USD 743/mt, until Monday it
dropped to USD 736/mt and started rising from Tuesday, reaching USD 750/mt ex-work including 9% VAT. Increasing exchange
rate and the higher price of HRC were effective in this trend.
CBI
weekly average ex-rate for Steel Products (SANA): Rials 109.146 / 1USD
02 Dec,
2019
----------------------------------------------
Iran
Steel News Bulletin