Billet
Billet market was almost stable during last week in Iran. The
average price, which was USD 381 /mt on Saturday, reached USD 384/mt on Sunday
and USD 383/mt ex-work including 9% VAT by the weekend. Despite fluctuation of DRI
price and its shortage, billet price did not change significantly. DRI price
reached USD 214/mt during the past week but became quiet since mid-week. Large
factories that have their own production of DRI are currently repairing their production
lines, so they have switched to other mines, such as Gol-e- Gohar Co or traders, to buy DRI. In the current
situation, DRI Shortage is a major problem for billet producers, but since long
products market was quiet last week there was no serious demand for billet.
The market is currently facing a decline in billet demand.
This is the best opportunity for DRI producers to meet their overdue orders,
but it does not mean a drop in DRI price. After January holidays DRI high demand from
billet producers will be felt again and billet price cannot stay at an average
price of USD 384/mt.
Long Products
Rebar price last week
had limited volatilities. The average price on last Saturday was USD 420 /mt
ex-work including 9% VAT, which was closed with minor fluctuations at USD 421 /mt
on Wednesday. The Rebar market was very quiet this week due to export market
lack of activity as buyers are in New Year Holidays. However, I-beam price
experienced a halt due to lack of sizes 14 and 16. Given the Holidays of
neighboring markets for export, this condition will most likely continue for a
while.
Flat Products
Price
of two mm thickness HRC on last Saturday in Esfahan was USD 548 /mt and in Ahwaz
was USD 512/mt, which reached USD 566/mt and USD 520 /mt ex-work
including 9% VAT, respectively by end of the week. HRC 3 to 15mm
thickness price averaged USD 608/mt on Saturday, reaching USD 621/mt by Wednesday.
Most market participants expect prices to go up, which is why most suppliers
are satisfied with the minimum sales.
Oxin
co HRP was faced with severe supply restrictions. The average price of the thicknesses
10 to 35 mm was USD 589 /mt on Saturday, reaching USD 609/mt by Wednesday. Market for Oxin co products is
very limited, while Kavian co HRP is also less supplied. Only thicknesses 15 to
25 mm were offered last week by Kavian co, averaging USD 565/mt on Saturday and
reaching USD 566/mt by Tuesday. Kavian's product was not released on Wednesday,
despite last week's auction of 30,000 tonnes of Oxin co HRP for export. As slab
production has declined, Oxin co HRP export will pressure slab market.
CRC
thickness 0.40 to 2.5 mm on last Saturday was USD 735 /mt, which reached USD 747/mt
by Wednesday. Market insiders mostly expect this trend to continue.
HDG
thickness 0.40 to 1.5 mm on last Saturday
was USD 745 /mt, but prices began to fall to USD 738/mt on Tuesday, but improved
slightly to USD 741 /mt on Wednesday. The reason for this increase was the
effect of higher HRC price. Following days foreign markets would be close due
to New Year Holidays, so only two factors can affect the market:
First,
raw material prices, especially DRI and scrap
Second,
supply of goods, especially sheets
CBI weekly average ex-rate for Steel Products (SANA): Rials 114.478
/ 1USD
30 Dec, 2019
----------------------------------------------
Iran Steel News Bulletin