Billet
The average
price of billet in Iran market on last Sunday was USD 450/mt, which reached USD
443 /mt ex-work including 9% VAT by Wednesday. On Tuesday, average base price
of billet sold at IME was USD 397/mt , which after VAT, would be USD 432/mt. Reasons
behind lower billet price were:
1- Lower ex-rate
in open market as the main and determining factor
2- The
psychological atmosphere of the market
With the current
situation, billet price in the retail market decreased to around USD 432/mt,
while the minimum price of DRI was USD 248/mt, which also was heard at USD 232/mt
too. The most important thing that was seen in the market last week was extreme
wait and see policy of participants, as a result of which production has fallen
sharply.
Long
Products
On last Sunday, price
of I-beam sizes 14 to 18 in Isfahan was USD 651/mt, which reached USD 628/mt by
Wednesday. There are also rumors that beam production lines in Isfahan Steel co
have been switched to rails, so the price of beams will be subject to demand
this week, which justifies the gap between the market price and the stock
market. Isfahan Steel co sold its I- beam on IME at an average base price of USD
470 /mt, but its delivery is for two months later.
Average price of rebar
on last Sunday was USD 525/mt, which reached USD 505/mt ex-work including VAT
by Wednesday. The large price gap between billet and rebar at IME shows that
rebar producers can’t afford their products costs, therefore production level
is declining. Main cause of the recession
in rebar market has been the negative sentiment prevailing in the market and
the downward trend of currency rate.
Flat
Products
Price of 2 mm thickness HRC was announced on last Sunday in Isfahan at
USD 875/mt, which reached USD 844/mt ex-work including VAT by end of the week,
and in some cases was up to USD 828 /mt. Mobarakeh Steel co HRC thickness 3 -
15 mm on Sunday was USD 755/mt ex-work Isfahan, which decreased to USD 734/mt
by Wednesday.
Oxin Co HRP also experienced some drops from USD771 /mt to USD 758 /mt
by end of the week.
CRC thickness 0.40 - 2.5 mm was priced at USD 1165/mt ex-work
including VAT on Sunday and decreased to USD 1142/mt by Wednesday.
HDG market followed downward trend of HRC and for thicknesses of 0.50 to
1.5 mm, dropped from USD 1130/mt to USD 1100/mt ex-work including VAT by end of
the week.
CBI
weekly average ex-rate for Steel Products (SANA): Rials 189.586 / 1USD
17 Aug
2020