Billet
Billet price continued its upward trend till last Monday due to rebar price rise and was around US$683/ mt fot northern Iranian port, including 3% VAT. By rebar price drop, 150 mm billet was in the same trend and finished the week at US$33/mt lower.
CIS suppliers are selling ready to deliver cargoes which Iranian buyers had ordered before to other destinations, justify themselves by the news of sanctions against Iran. This has increased worries about more limited supply during next months.
Billet import level picked up during 21 Apr- 21 May period at 383.000 tonnes. But during last 2 weeks (July 24th- Aug 5th) was down to just 64.000 tonnes.
For any reason, if rebar and sections demand increase, billet price would surge upward significantly.
But it’s notable that Ramadan is coming and sections prices won’t increase more.
At the moment foreign traders are offering billet for US$ 610-630/mt cfr northern ports, in limited tonnage and just by TT not LC.
Long products
From Saturday till Monday, sections prices were increasing. Rebar was up by US$10/t and reached US$803/t including 3% VAT. I-beam was up around US$20-35/t depending on its size. Angle and UNP saw the most price rise by US$25-45/t. On Monday, rebar price was upward again but I-beam and UNP down around US$5-15/t. this trend continued till Wednesday and rebar was US $773/t including 3% VAT. I-beam down around US$15 /t and UNP US$10/t. this sudden drop was for market sentiment, as demand is limited and supply won’t increase. During last 2 weeks, I-beam and UNP had no import as in last months it was in down ward trend.
Because import offers are so limited and domestic production has dropped, supply is so low and market so stagnant. As Ramadan is coming there is no hope for any price rise.
Flat products
First days of last week, flat products prices were upward in Iran market. 2 mm HRC was up to US$703/mt including 3% VAT but from Monday onward were dropping and HDG and CRC finished the week with US$ 20/t drop. But HRC market was worse as it reached US$633/t including 3 % VAT. Domestic mills increased their offer price for hot rolled plate of 15 mm and more. But 2.5-10 mm HRC lost around US$10-15/t.
Flats availability is so limited in Iran. Import level was downward during last months as for HDG almost stopped during last 3 months. But high inventories and Ramadan possible silent market has forced traders to sell their stocks to have more cash in the Islamic fasting month.
It’s possible that after next 2 weeks when mills start producing again, flat products market would change in Iran. At the moment 2 mm HRC import offer price is US$610-630/t cfr by TT not LC. CIS producers are not offering CRC as they had many bookings during last 2 months. Currently a lot of uncertainties have surrounded the import market, though Iranian buyers prefer to focus on domestic market.
Iran Steel Service Center