Iran market trend in week 19
Billet
Last week Iran billet market was so silent and just small volumes were being transacted. Billet size 150 mm was being offered down to $602/mt fot Anzali including custom duty and 3 % VAT. But by Tuesday after debar market prices improved, it reached $612/mt including custom duty and 3 % VAT.
Iran billet market is depressed since there are high inventories of low price billet of $550/mt cfr in the market. From mid February till last week more than 900,000 tones of billet has been imported to Iran. But billet market in Iran has no demand due to sections market''s low prices and holidays.
As long products prices are falling and billet price in global markets is decreasing, it''s unlikely to see the market improvement in near term.
On Wednesday, a cargo of CIS origin billet size 150 mm for immediate delivery to Anzali was being offered at $590/mt but no buying interest.
Perhaps if billet price falls down to $540/mt cfr Anzali in the coming month, buyers will be more active. But for this to happen, fob price of CIS origin billet should be $480/mt, which means scrap price to be down to $330/mt fob basis. As scrap prices are decreasing, CIS mills are not booked fully and Iran billet market is stagnant, achieving this level is possible for billet price.
Long products
Shortage of demand made long products market have a down ward trend during last week. Government has not started spending for infrastructure projects yet, so demand is too poor. Demand of long products comes from government. Sections import market is so silent in Iran because there is a long gap between domestic and global market prices. Besides there are high inventories of low price cargoes in the market yet and global prices are decreasing, so many sellers are trying to de-stock their inventories.
On Tuesday, Azarbaijan Steel was unable to sell its long products at $703/ mt including custom duty and 3% VAT in TME (Tehran Metal Exchange) as there was no buyer at this level. On Tuesday and Wednesday, debar sellers were trying to keep prices from decreasing but were unsuccessful.
Equal angle and UNP price of smaller sizes increased around $5/mt at the beginning of last week but fluctuate around $10/mt during the week.
IPE market was depressing too. IPE sizes 140,160 & 180 mm was being priced up to $713/mt including custom duty and 3% VAT in Isfahan Market. Generally, long products prices were in a falling trend last week and this will continue for a while.
Flat products
2.00 mm HRC price starts decreasing from last Saturday and after $20/mt depression, reached $592/mt at the end of the week, including custom duty and 3%VAT. Just a few offers were around $588/mt in Anzali port.
As global prices of this product are decreasing, most Iranian traders are trying to de-stock their inventories. The main reason for this product''s price depression is stagnant market of pipe & profile in Iran.
Last week lowest offer price of CIS origin HRC was $610/mt cfr Anzali, which its cost price is yet 10% higher than domestic market''s latest transaction price.
For the other kinds of flats, finally Mobarake Steel stops selling in just 100 tones parcels, but as its service centers started offering different kinds of flats and due to market stagnancy, current transacting prices are almost the same as Mobarake Steel''s prices. Traders'' profit margin is so limited and in some cases they are suffering loses. Therefore it''s likely that Mobarake Steel offer prices will fall in TME (Tehran Metal Exchange).
CRC market had a silent week, in some cases prices decreased around $20/mt. Some sizes of CRC especially 1.20 mm were so limited in supply. CIS suppliers offered CRC at least $760/mt cfr Anzali at small volumes, but prices are decreasing due to lack of demand.
In the following months many home appliance producers will not work, so CRC importers prefer waiting policy, as import prices are too high, market is not active and there''s no demand in the market.
HDG and PPRG market were silent as a few weeks ago. PPRG price depression and its market stagnancy were so considerable last week. Lowest price of Chinese HDG is $990/mt cfr Bandar Abbas which based on current market prices, buying from China is not cost effective for importers.
Iran Steel Service Centre