Billet
Billet average price in Iran domestic market on last Saturday was USD 372 /mt,
which reached USD 390 /mt ex-work including 9% VAT by Wednesday. The reason behind
the increase was upward global prices and this made IME billet base price up by
USD 34/mt. But for 184,000 tons offered billet at IME only 41,000 tons were
sold. This is a good opportunity for big mills to become more active in export
market but smaller mills are in challenge of limited long products demand,
therefore are producing in limited tonnage.
DRI price is still in the range of USD 230 -232 /mt, and scrap price is USD
295 -307 /mt. upward global prices would make domestic billet market inventory
level lower. If the upward trend of prices in world markets continues, domestic
market will have to follow it in the next two weeks because supply volume will
decrease.
Long
Products
Average price of rebar
on Saturday was USD 432 /mt ex-work including VAT. Higher billet base price at
IME made long products market positive, and rebar average price reached USD 456
/mt by Tuesday. As billet buyers were
not active, rebar average price also reached USD 453 /mt by Wednesday, but if prices at IME continue upward trend in
coming weeks, confidence will return to long products market.
I-beam market trend
was the same as rebar. Esfahan Steel co I-beam offered at IME remained without
buyer mainly due to its long delivery time. The average price of Sizes 14-16 and 18 I-beam in Esfahan, which
was USD 457 /mt on Saturday, reached USD
475 /mt by end of the week. Market insiders believe I-beam price won’t decrease
any more but upward momentum is strong.
Flat
Products
HCR thickness 2 mm
was USD 667 /mt on Saturday in Esfahan market, which reached USD 716 /mt by end of the week. Average price of 3 to 15
mm thickness HRC, which was USD 582 /mt on Saturday, reached USD 625 /mt by end
of the week, while there is no hope for further market improvement because
demand is weak.
Oxin co HRP thickness
10 -40 mm were up from USD 617/mt to USD 632/mt ex-work including VAT. Kavian Co
HRP was not separated from this trend and its average price increased from USD 574
/mt to USD 578 /mt.
CRC thickness 0.40
to 1.5 mm was priced at USD 1010 /mt ex-work including VAT on last Saturday,
which reached USD 1013/mt by Wednesday. CRC market sentiment is not very
positive as Covid-19 related restrictions have affected CRC demand.
HDG price had a
downward trend from USD 938/mt to USD 925 /mt ex-work including VAT by end of
the week.
CBI
weekly average ex-rate for Steel Products (SANA): Rials 247,207USD
07 Dec
2020