Billet
Iran billet market was so quiet last week. It was trading for about IRR 6,000,000/tonne ($600/t) in Iranian northern ports on the Caspian Sea. At the end of the week sizes 100 mm and 150 mm were offered at IRR 5,900,000/t ($590/t) but limited transaction. As long products market is silent in Iran, there is a lack of demand for billet too.
Imported billet is prevailing around $520/t delivered to Iranian northern ports, but can not find buyer. Foreign suppliers are looking for firm bid of buyers. They know buyers are watching the market trend cautiously, so if they decrease prices sharply, it would increase uncertainty and put buyers out of market.
Some buyers are looking for prices under $500/t cfr Iranian northern ports which mean $470/t fob black sea.
In the last Iranian month (ended 21 May) more than 380,000 tones of billet was imported to Iran which some parts of it were low priced lots bought in the last Iranian year (ended 20 March).
Due to long products low demand, current billet inventory is enough in Iran market and global prices are decreasing too, so traders prefer to wait and watch.
Long products
Generally, long products market is quiet in Iran and prices are dropping. Due to billet market sentiment, a down ward trend is expected for long products in coming weeks.
Last week, grade A3 rebar price dropped day by day and stopped decreasing on Tuesday. Iran Mercantile Exchange trading was quiet too and demand was limited during the week.
UNP and Angle average price decreased around IRR 50-100,000/tonne ($5-10/t) every day. IPE price decreased around IRR 150,000/t ($15/t) for some sizes until middle of the week. After Isfahan Steel closed shipment on Tuesday, prices stopped decreasing and became stable.
Sections production capacity has increased sharply in recent years but now its demand is too low, thus its import market is very quiet. In Last Iranian month (ended 21 May), 22,000 tones of UNP, 156,000 tones of IPE and 20,000 tones of A3 rebar were imported to Iran but no Equal Angle. Those imported cargoes were priced 4 months ago, thus it''s expected that long products import volume will drop more in coming months.
Flat products
During last week, price of HRC 2 mm thick decreased around IRR 300,000/t ($30/t) in Iran and reached IRR 5,500,000/t ($550/t) including %3 VAT. Some cargoes were offering for IRR 5,400,000/ t ($540/t) but with big tonnages.
Cold rolled coil supply is limited and its price dropped slightly through the week, about IRR 100,000/t ($10/t) for some sizes. HDG price was almost stable last week in domestic market and just some sizes decreased around IRR 100,000/t ($10/t).
Imported 2mm HRC is being offered at $580/t cfr Iranian northern ports on the Caspian Sea and Iranian buyers are looking for $530-550/t cfr Iranian northern ports. Some prompt delivery lots are available too.
Cold rolled coil, of CIS-origin is being offered at $750/t but buyers prefer prices under $700/t to order.
HDG imported from China is selling for $970/t cfr Iranian southern ports but due to low demand and lower domestic prices, it could not find any buyer.
Iran Steel Service Centre