Billet
Average
price of steel billet on last Saturday in Iran domestic market was USD 449/mt,
which reached USD 472/mt ex-work including 9% VAT by Wednesday. The peak price
on Tuesday was USD 477/mt. There were several reasons for upward trend in
billet market:
The
first one was higher ex-rate.
The
second one was higher export price, which is more than USD405/mt FOB Iranian
ports.
Thirdly,
the inflationary expectations of steel market and limited supply of DRI and its
price improvement, which was being heard in some places at USD 224 /mt by end
of last week.
Long Products
Last
Saturday average rebar price in Iran market was USD 499/mt ex-work
including 9% VAT. Market sentiment was upward until Wednesday,
when the price reached USD 520 /mt. But the volume of transactions was very
limited. The reason for the limited trading was last cheap purchased cargoes
being offered in the market.
Despite
the fact that the average cost price of rebar at IME was USD 443/mt, but previous weeks cheap purchases
made retail market calm. Market participants are concerned about two things:
Firstly as global billet price has been upward
recently with Chinese demand slower, participants are worried about Iran export
market negative sentiment and slower export prices.
Secondly, due to construction market quiet
sentiment, most Iranian mills are producing at minimum capacity, so the market
is in a very fragile situation.
Average
price of I-beam sizes 14-18 in Esfahan was USD 625 /mt on last Saturday, but by
Wednesday it reached USD 679/mt. Some traders expect the price to correct
itself slightly in coming weeks as market can’t absorb this price increase over
a week.
Flat Products
Price of 2 mm thickness HRC on last Saturday was USD
794/mt ex-work Esfahan and USD 775 /mt in Ahwaz market, which reached USD 864 /mt
in Esfahan and USD 850 /mt in Ahwaz by end of the week.
HRC thickness 3 to 15 mm of Mobarakeh Steel co product
rose from USD 671/mt to USD 706 /mt by Wednesday. Higher ex-rate was the main reason
behind this upward trend, but what lies behind this issue is the increase in
demand for export slab and its higher price.
Oxin co HRP, which were priced at USD 669 /mt on last Saturday,
reached USD 696 /mt on Wednesday. Market
participants expect HRP upward trend continue for a while.
CRC was priced at USD 1042 /mt on last Saturday and
increased to USD 1123 /mt ex-work including 9% VAT by Wednesday. Rising ex-rate and declining offer
levels were reasons behind this increase.
HDG had an upward trend due to higher HRC price as
well as increasing ex-rate from USD 999/mt to USD1084/mt ex-work including 9%
VAT.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 214.181 / 1USD
14 Sep 2020