Billet
During last week, billet price was up around 5% in Iran market and reached US$715/mt fot Anzali port in northern Iran. Some factors are influencing this upward trend. One of them is falling level of billet import. As billet price is almost stable in Iran, importing is not cost effective. Another reason is high price of sections leading to higher price for billet. But level of transactions is very few, because subsidy reform plan implementation is near and consequently many producers have decreased supplying.
Another view says billet price has picked and should experience some downward trends in September. Any way there is no choice unless waiting to see what will be the market trend after Ramadan.
Long products
Last week Iranian long products market was sensitive. As Esfahan Steel mill was out of market, longs prices stayed strong and continued rising during the week. On Wednesday, the mill started offering in Tehran Mercantile Exchange so this made prices flat, but when the mill’s sales were canceled, market prices begin upward trend again but no deal was done.
The main reason for rising price of long products up to 8% in a week is lack of supply from domestic producers. At the same time traders are willing to increase inventories as subsidy reform plan will start performing very soon and they want to have enough stocks when it happened.
Implementing some bans against imported long products has fueled this situation more.
Some says government knows steel price should rise so it’s making ready the market to accept future trend. Increasing ambiguity in government policies can be the main reason of this situation as real demand is scarce and deals are just for stocking.
Flat products
At the beginning of last week price of Hot rolled coil 2 mm tick dropped in Iran but finished the week at higher price of US$710/mt fot Anzali , including 3% VAT..
CRC market was strong and started rising from Wednesday. So sellers became more cautious in dealing. HDG market is in the same trend as CRC in Iran
At the moment due to Ramadan weak market and summer holidays of many consuming section such as home appliance producers, flat products are in lack of demand.
General market trend is that Mobarake Steel mill is not willing to supply as next month will have higher raw materials costs. Import market of flats is silent too and the best policy is to keep inventories at fixed levels.
Current offer price of 2 mm HRC is US$635/mt cfr Anzali and latest CIS origin CRC price US$780/mt cfr Anzali.