Billet
Billet price,
which was USD 504/mt at beginning of the week, decreased by USD 30/mt to USD 474
/mt ex-work including 9% VAT at the end of the week. Finally after two weeks,
billet was offered at IME ( Iran Mercantile Exchange), while its demand was
about 50 % higher than supply level.
Reasons behind lower
billet price were ex-rate stability and its low rate, lower rebar export level,
government pressures on the market and psychological condition created and the seasonal
recession.
Market insiders
believe that current downward trend won’t continue much as global billet price
has been upward currently which is a reason for more export market activity. At
the moment market is waiting for more clear future trend.
Long Products
Average price of
rebar was USD 814 /mt on last Saturday, but it didn’t have any buyer and
reached USD 551/mt by last Wednesday. Average price of rebar has experienced around
30% rise during a month therefore market participants expect some decline in
its price but won’t be lower than USD 499/mt due to costs and taxes. I-beam size
14-18 on Saturday was USD 714/mt, which reached USD 705/mt by end of the week.
The average base
price of billet offered at IME was about USD 439/mt and the average price of rebar
was USD 452/mt. This price relationship is not justifiable at all.
Most market
participants expect the market to make a decision in coming days, otherwise the
coming weeks will be difficult weeks for Iran steel industry.
Flat
Products
HRC 2 mm thickness was announced on last Saturday in Isfahan market at
USD 939 /mt, which reached USD 914/mt ex-work including 9% VAT by Wednesday.
The reason for the drop in prices was the market recession. Mobarakeh Steel co
HRC product with a thickness of 3 to 15 mm were priced at USD 799/mt on
Saturday and reached USD 783/mt on Wednesday. For the first time in a long time,
slab was offered at IME, but Hormozgan Steel co succeeded to sell just 32,000
tons of its slabs, while Khuzestan Steel co slab had no demand and Mobarakeh steel
co sold only 2,000 tons.
The average price of Oxin Co HRP thickness 10 -40 mm, which was USD 815
/mt by beginning of the week, reached USD 796/mt by last Wednesday, while Kavian
co HRP thickness 15-25 mm, which are facing a more disciplined supply, were
priced at USD 723/mt on Saturday, until Wednesday reached USD 710/mt ex-work
including VAT. Demand level is not affecting flat products market much and by
price controls from market leader Mobarakeh Steel co it seems that any drop in
prices won’t be serious.
Average price of HDG thickness 0.50 to 1.5 mm, which was USD 1237/mt
on last Saturday, reached USD 1206/mt by Wednesday. The decrease in the price
of this product is due to lower HRC price and market recession.
CBI
weekly average ex-rate for Steel Products (SANA): Rials 184.288 / 1USD
10 Aug 2020