Billet
During last week price of billet size 150 mm in Iran was almost stable around US$717/mt fot Northern Port including 3% VAT. Every one is confused about future market sentiment. Billet import level has dropped due to payment problems; accordingly prices should rise in next month but meanwhile State policies against exchange rate fluctuations and holding long products prices stable won’t let billet price go upward. Scarce demand of sections is another factor influencing billet market.
Traders have no hope for better situation in Iran market. Latest offer prices for billet size 150 mm was US$610/mt cfr Northern Ports but at low levels
Long products
Sections prices didn’t changed significantly during last week in Iran. At one side state policies were against any price increase in Tehran Metal Exchange and on the other hand cheap imported debar prices influenced the market. Although supply is limited, demand in low too.
At the beginning of last week, sellers tried to increase prices but market didn’t accept it, so by Wednesday prices returned to a week before levels. Uncertainties had a downward pressure on transaction levels so that traders bought just for their immediate needs.
Low demand is the main reason of market uncertainties but other factors include ambiguities about VAT rate and exchange rate fluctuations. These factors made market participants pessimistic about future and in wait and watch mode.
At the moment UAE origin debar is offering for US$640-650/mt cfr Southern Ports but in very limited tonnages.
Flat products
Flat products have passed a very quiet week in Iran. Iranian traders are confused. Volatile currency rate and Value Added Tax problem coupled with payment problems in import market has decreased supply levels. But downward trend of global prices made many traders prefer wait and watch policy.
Delivery time of Mobarake Steel Mill flat products being sold during last months is coming and if this trend continues, at least prices will become stable, otherwise will increase. But demand is dead and transaction levels low.
Most of the traders prefer dealing by TT as they don’t know what will happen during coming months. It’ notable that import level has decreased compared to last months. HRC 2 mm thick dropped by US$12/mt and reached US$687/mt fot Anzali. 2.5-15 mm sizes were almost stable.
Demand is dead. 2 mm hot rolled coil is offering for US$ 640/mt cfr Northern Ports and CRC for US$735/mt by CIS suppliers.
Iran Steel Service Center