Billet
As expected, billet price was upward
during last week in Iran. The average price on Saturday was USD 377/mt, but
reached USD 382/mt ex-work including 9% VAT at the end of the week. Size 150 mm
was offered by mid-week above USD 383/mt, while its supply level was limited.
Two factors were behind billet upward price:
First, the severe restriction of DRI
supply and the rising price of steel scrap have reduced supply level of billet.
DRI was offered at a base price of USD 196 – 205/mt excluding VAT, while it was
faced with transportation problems.
Second factor was higher ex-rate. With
January approaching, currency return on export will slow down, which is why
most traders do not expect the exchange rate to drop but hope it to increase.
Billet producers have pre-sold their
products for export till the end of February. As Chinese mills traditionally increase
raw materials stock level at the end of each year, Iranian billet export will
continue.
Currency restriction due to approaching Christmas
Holidays abroad makes exporting billet more attractive, however, Iranian DRI
producers are left helpless. The government's policy is to keep the price down,
therefore the current market trend is not expected to change.
Long
Products
Average price of debar diameter 8 to 32 mm rose from USD 415/mt
to USD 421 /mt by last Wednesday. As billet price is upward, this trend will
continue in long products market too. Actually higher debar price was not due
to better demand but just for higher cost price. If the export level be like last
6 months, price of debar will probably go up to USD 455/mt. The uptrend of
debar at IME is also witnessing this.
On last Sunday,
Khorasan Steel Co sold its debar with USD 11/mt weekly improvement at USD 373/mt
ex-work excluding 9% VAT.
As semi- finished products export level increase, the
volume of raw material supply to re-rollers will become limited, resulting in
higher prices for debar due to lower production volume.
I-beam price also went up and the average price of sizes
of 14 -18 from Esfahan Steel co increased from USD 476/mt to USD 480/mt ex-work
including VAT.
Flat
Products
Price of 2 mm thickness
HRC on Saturday in Esfahan was USD 547/mt ex-work including 9% VAT, which
reached USD 556 /mt till Wednesday. In Ahwaz, HRC price rose by USD 14 /mt to
USD 528/mt ex-work including 9% VAT. Availability of thicknesses 3 to 5 mm was
limited during the week but the average price of thickness of 6 -15 mm rose
from USD 551 /mt to USD 575/mt. Supply constraints, rising currency prices and
sellers' expectations for market recovery were the main reasons behind price
increase.
Oxin co HRP
thickness 10-30 mm supply level was limited and made price rose from USD 531
/mt to USD 558 /mt by end of the week. Kavian co HRP also increased from USD 515/mt
to USD 532 /mt while its supply level was limited. Higher slab price is one of
the main reasons for the rising price of HRP.
CRC price rose from USD 712/mt to USD 744 /mt ex-work including 9% VAT. It
had a fluctuating market and till Wednesday price trend was not clear by main
suppliers.
HDG price increased
from USD 752/mt to USD 780/mt ex-work including 9% VAT. The main reason for the
increase was the rising price of HRC and higher ex-rate.
CBI
weekly average ex-rate for Steel Products (SANA): Rials 109.753 / 1USD
09 Dec,
2019
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Iran
Steel News Bulletin