Scrap
Scrap price became stable last week in Iran market. Demand was weaker than before because down ward of long products prices dampen the market.
Scrap buyers are trying to decrease purchasing price by around USD10/mt to USD345/mt fot . If current sentiment stays in the market, it would happen but as scrap demand will be increasing during next year, government should do something to increase supply. Scrap market is facing many challenges such as problems in collecting and transporting.
Billet
Billet market was downward during last week, as government is controlling sections market strictly and it made long products prices fall, also billet supply has increased.
During last Iranian month about 484,000 tones of billet was imported to Iran and in first week of the current month more 150.000 tones of billet came to Iran.
Government pressure on Iran Mercantile Exchange (IME) for decreasing sections prices has increased and it‘s controlling inventory levels of sections, so it has dampen demand.
Size 150 mm billet which was offering for USD720/mt for weeks, has reached USD700/mt during last week and selling offer levels has drop so.
Imported billet is now offered for USD610-630/mt cfr Northern Ports.
Long products
By the beginning of last week downward trend of long products market was obvious.
Lack of demand and market heavy slump end to drop of around USD5/mt per day for debar and I-beam. Iran Mercantile Exchange was influenced by price decreases and everyone is confused about implementing program of controlling inventory levels and price by this Saturday. As government way of performing this plan is not clear.
Although as winter in coming, demand has dropped and billet supply rise and its dropping price will increase downward trend of long products.
Debar import offer is stable at USD640-660/mt and buyers are ordering very cautiously at low tonnages.
Flat products
Last week Iran flat products market experienced low demand and falling prices. 2 mm HRC dropped by USD24/mt to USD670/mt fot Anzali port including 3% VAT. A large parcel was transacted at USD650/mt with 10 days delivery.
CRC price dropped around USD19/mt and its average price was USD890/mt fot Anzali including 3% VAT.
HDG price was lower by USD19 /mt.
Confused sentiment of the market has decreased prices and it made buyers stop transaction and hold wait and see policy.
Some traders say as some private companies have bought flat products at high tonnages, when it comes to market it will worsen the situation. Government is controlling inventory levels.
At the other hand lack of demand will help the market situation. Some market participants believe that prices will increase after a month later. Reason is that at the moment last months cheap purchases are available. For example CRC inventories in the market have been bought at lower than USD680/mt but it has been more than 3 month which CRC offer price to Iran become USD730/mt or higher. Or current HRC stocks in Iran has been bought at less than USD600/mt cfr Iran but it’s more than 2 months which is being offered at USD610/mt cfr or more to Iranian buyers.
As demand is very low, next week prices won’t rise in flat products market.
Iran Steel Service Center