Billet
At the beginning of last week by increasing trend in Iran rebar market, billet price rose too. Actually it’s not the only reason of billet price increase and two other factors influenced the market. Firstly, Import levels have dropped sharply during last 3 months and secondly CIS origin billet price has reached $530/t cfr northern Iranian ports. Foreign suppliers in north of Iran are trying to keep offer price for Iranian buyers at this level.
At the beginning of last week billet price was $540/t fot northern Iranian port at Caspian Sea including 3% VAT but finished the week at higher level of $570/t. Offers were so limited but buyers cautiously deal on low tonnages. They are waiting as believe that prices would decrease by Ramadan coming.
If the current trend in import market doesn’t change, billet price will stand at $570-600/t fot northern port including 3% VAT. If not, it’s expected that after a drop in price of CIS origin billet, prices in Iran market will start to slip too.
Long products
At the beginning of last week, long products prices saw some changes, price of angle, UNP and some sizes of I-beam increased. But rebar price dropped around $5/t in Isfahan market. Prices were somehow in upward trend on Sunday, angle and UNP almost stable but I-beam price increased. This trend continued till Wednesday but afterward prices dropped again.
Last week a sale of a 50,000 tone lot at Tehran Mercantile Exchange was cancelled, though this event influenced the market trend. Buyers found Mercantile Exchange working with a lot of uncertainties.
Increase in long products price was partly due to increasing demand of government housing projects and there is a rumor that last months sales of debar of Isfahan Steel will have longer than expected delivery time and this news has influenced the market.
Flat products
Flat products market was almost stable last week. On Saturday HDG and CRC prices increased by $10-20/t, HRC 2 mm tick up by $5/t to around $590/t, but after that started falling and by the end of the week reached $560/t fot Anzali( northern port) including 3% VAT.
CRC and HDG prices didn’t change and fluctuate a little. Mobarake Steel sold its HRC and HDG
products by letter of credit in Iran Mercantile Exchange. Meanwhile as current market price is cheaper than buying from the mill, there is no interest in Mobarake offers. HRC product of Mobarake Steel is available at high inventories in the market but more in service centers and they are offering at low prices by support of the mill.
For example, acid-wash plate in Tehran market is offering for $640-650/t, but its cost price is more than $660/t including 3% VAT. It’s the same for 2-5 mm HRC.
CRC offer price of Mobarake Steel mill didn’t change last week due to limited production but market price is cheaper than the mill’s price.
It seems by current world market situation, Mobarake steel should decrease its offer prices.
Import offer price of HRC 2 mm tick is $560/t and CRC 0.7 -2 mm CIS origin is offering for $650/t CIF northern Iranian ports. Meanwhile HDG price is $870/t cfr southern Iranian ports but no interest to buy.
Iran Steel Service Center