Billet- Falling but slowly
Last week billet price dropped slightly in Iran domestic market, around $5-10/t comparing with previous week and reached $560/t fot Iranian northern port including 3% VAT. Billet market is facing very limited demand and transaction levels not more than 1,000 tones per lot. Many producers have limited margins as sections market is depressed. Though they cut production or stopped it for a while, waiting for market improvement.
On the other hand spot price of billet, CIS origin is $500/t CFR Iran northern port at Caspian Sea but likely to fall to under $500/t. Meanwhile exchange rate of US Dollar reduced to IRR10,500.- /US Dollar. But current market inventory has been imported by cheaper US Dollar of IRR10,000/US Dollar. Due to high inventories at ports and limited inquiry, any price increase is impossible despite improvement in demand.
Long products- Depressing trend continues
Long products had a difficult week in Iran. Rebar was offering under $700/t including VAT, that is around $10-15/t lower than previous week.
Cheap imported materials are being offered at strange trends. On Wednesday, German origin rebar, diameter 10 & 12 mm, was offered up to $660/t but no buyer in the market, despite the fact that supplier was ready to negotiate more and have a discount.
IPE price was down $10/t, angle and channel dropped around $5/t.
As construction projects have stopped working and this lead to low demand, long products market is so quiet.
Many traders are taking wait ad watch policy, as depressing global prices, limited bank credits and government policies to decrease inflation rate have increased uncertainty.
It’s unlikely that market situation would change in coming weeks, as The World Cup has begun and will influence market activity.
Flat products- Cheap import influenced market
Iran flat products market was so silent last week. Falling cfr price of CIS cold rolled coil a week ago, affected domestic market during last week. CRC price dropped around $15-20/t and HDG around $30/t. HRC 2 mm thick was down around $10/t and reached $560/t at Iranian northern port of Caspian Sea including 3% VAT. Other sizes of HRC including 2.5-15 mm thick had a weak market and dropped by $15/t.
Regarding Mobarakeh Steel’s limited supply of some sizes, shortage is appearing in the market especially for cold rolled coil. CIS suppliers are offering HRC 2 mm tick for $560/t and CRC around $640/t cfr northern Iranian ports. Imported HDG, China origin is around $920/t cfr southern Iranian ports, but buying interest is so limited. Same trend is expected for coming weeks.
Iran Steel Service Center