Billet
Average billet
price, which was USD 419 /mt on last Sunday in Iran domestic market, reached USD
388/mt ex-work including 9% VAT by end of the week. Main reason for the
decrease in price of billet was the sudden drop in currency price in free
market. Following the decrease in the price of billet, DRI price also went down
and the average base price was heard up to USD 190 /mt excluding VAT.
This is
while the cold season and the drop in gas pressure are on the way for DRI
producers, which is why big sellers are reluctant to discount. The exchange
rate stabilized slightly on Wednesday, but the market needs more stability.
Long
Products
Average price of rebar on last Sunday was
USD 465 /mt ex-work including VAT in Iran domestic market, but by end of the
week it reached USD 441/mt, while transaction prices were up to USD 415 /mt. Average
price of I-beam sizes 14-16 and 18 was USD 511/mt on Sunday, which dropped to USD
495 /mt by Wednesday.
Many market participants believe that the
price of long products has reached its bottom in the current situation. As
average base selling price of billet is USD 332/mt, rebar price will not fall
below USD 415 /mt including VAT. On the other hand, billet price do not have
room to decrease more because DRI price does not allow this to happen, but it
is possible that market would stabilize after a period of two weeks tensions.
Two factors are influential during these two
weeks, first the exchange rate and second, previous purchased inventories.
Since it is nearly three months, that rebar price has been around USD 415/mt,
so market inventories do not have much effect, but exchange rate would be main cause of ups and
downs.
Flat
Products
2 mm thickness HRC was USD 786/mt on last Sunday and reached USD
762/mt by end of the week, but on Wednesday sellers were absent from the
market.
Mobarakeh Steel co HRC thickness 3 to 15 mm, which was priced at USD 592 /mt
on Sunday, dropped to USD 557 /mt by end of the week.
Oxin co HRP products with thickness 10
to 40 mm increased from USD 583/mt to USD 574 /mt. Kavian co HRP thickness 12 -
25 mm changed from USD 532 /mt to USD 531 /mt.
CRC price fell from an average of USD 1085/mt to USD 1044/mt and HDG price also
drop from USD 1069/mt to USD 1026/mt.
CBI weekly
average ex-rate for Steel Products (SANA): Rials 288,778/ 1USD
26 Oct
2020