Scrap
Scrap price didn’t change last week in Iran market but market remained firm and strong. Grade 1 scrap was priced at US$326-336 /t fot .
In import market, two 3.000 tones parcels were transacted for HMS 1&2 (80-20) ) at US$360/t and US$350/t cfr Northern Iranian Port. Looking at demand of scrap in domestic industries shows strong growth and price increase but traders should be more cautious about long products market during coming weeks as market trend is not as they want it to be.
Billet
Billet price didn’t change significantly last week. 150 mm billet was transacted at US$710-720 fot Anzali, 3% VAT included. But transaction levels are so limited, traders work so cautiously and future market sentiment is full of ambiguities.
As government fixed roof of US$750/t for debar in Tehran Mercantile Exchange, those mills having melting facility, can meet this price, but re-rollers depend on retail price of market which should not be less than US$870/t including 3% VAT. If debar price comes below this rate, re-rollers will cut production and billet price will decrease.
Foreign suppliers are offering billet size 150 mm at US$610-620/t cfr Northern Ports.
Long products
Last week, long products market was calm. By the beginning of the week decreasing trend started and debar price dropped by US$ 5.8-9.6/t but it finished the week at a week ago levels like I- beam.
Almost all traders are worried about the future. New regulations for traders at TME have decreased number of buyers. In the other hand last months orders which were cheaper are coming to the market. Two month ago more than 400.000 tones of sections were transacted at TME and last month it reached 500.000 tones due to the price gap between TME prices and physical market prices, but import level rose from 36.000 tones to 100.000 tones.
Market sentiment is that high inflation caused by implementing subsidy reform plan would increase prices but market stagnancy and demand shortage has made every one so cautious .
At the moment UAE origin debar is offered for US$640-650/t cfr Southern Ports by LC and 20 days delivery time but buyers purchase at low tonnages.
Flat products
Flat products market was so silent last week. 2 mm hot rolled coil price increased around US$14/t during the week and reached US$710/t fot Northern port including 3% VAT. CRC was offered for US$890-920/t fot Anzali and HDG price didn’t change.
In import market, 2 mm HRC is offered for US$630-640/t, CRC about US$750/t and HDG is US$850/t.
Demand is so limited but supply level is low too as every one is so cautious. Last month HRC import level raised around 30.000 tones compared to a month ago. CRC inventories available at Anzali port are cheap orders of 4 months ago at US$680 /t cfr Anzali. After these parcels are sold, CRC price must increase by around US$96/t.
Iran Steel Service Center