Iran steel market trend in week 36

Billet

Billet prices decreased last week in the Iran market. On Saturday 4^th  September, it transacted at USD 745.-m/ tones in Anzali including 3% Tax. But due to collapse of long products prices, billet prices also started to come down. In September 11^th, it reached to USD 700.- m/tones including 3% tax. As Government policy is pushing down prices, it is expected that downward trend continue in next week.

Last offered price of billet from CIS was USD 640.- CFR Anzali by sight Lc. By collapsing of billet prices in Iran, it is believed that suppliers will reduce their prices, As Importers will wait and watch market condition.

Long Products

On 4^th September, Long product prices was in peak, but after the meeting of ministry of Industry and mining with steel mills on 5^th Sep, every thing changed. Tehran Mercantile exchange suddenly stopped transaction and market became silent. On 5^th Sep afternoon, Long product prices started to march down and this trend continued during the week.

In Spite of past years tradition, Mobarakeh and Esfahan Steel mills offered long and flat products together on Monday. Meeting of Mining and Industry, Mine deputy and minister of Housing showed that government is serious in his policy to reduce steel product prices. Following terrible inactive market of Ramadan, long products prices reduced about USD 70.- which translates to 8% decrease in prices in the market. It is believed that this trend will continue for weeks. Market mentality is avoiding stock so most of traders will rush to sell their long products. Currently, offer prices of UAE debar is USD 600.- CFR Bandar Abbas and Turkish one is going to sell it at USD 650.-  Per m/tones delivered to SERO on cash basis.

Flat Products

Due to government policy, Flat product prices has downward trend in Iran market. HRP prices had come down USD  35.- per tone, HRC thickness 2.00 mm also decreased by USD 50.- per tone to USD 650.- including 3% tax.

CRC prices also reduced USD 25.- per tone but it is expected that it's price to go up next week since domestic supply is not sufficient and home appliances mills will start their purchases after Ramadan.

Currently, HRC 2mm is offered at USD 660.- m/ tones, CRC USD 760.- m/ tones and GI at USD 890.-, all CFR Anzali. It is expected that CIS suppliers reduce their offers since Iran market is coming down.