Billet
During last week billet price in Iran market dropped by around USD10/mt and at the end of the week size 150 mm was USD680/mt fot Anzali port including 3% VAT.
On Sunday, billet size 150 mm was priced at USD684/mt including 3% VAT, there was an offer at USD665/mt by 10 days delivery at Bandar Imam Khomeini port.
Iran has imported around 500,000 tones of billet from CIS and about 200,000 tones from Turkey, during October. But these orders have not reached Iranian ports yet. They will reach Iran market during next months which demand is weak, so billet price has to decrease.
Another challenge which billet market is facing in the future is that refinance LC will be used by speculators on billet more, as this type of LC’s will be allocated to billet orders.
Billet offer price is USD630/mt cfr Northern Iranian ports by LC but at very limited tonnages.
Long products
By the beginning of last week, common trend in long products market was downward. Market participants believe that prices will drop for many reasons such as seasonal decreasing demand, government policy for lowering prices of debar and I-beam to USD680/mt in Iran Metal Exchange ( IME), and increasing domestic and import supply.
At the time Iran import debar from UAE, Egypt, Turkey and CIS countries since domestic producers are active in the market. Last month average debar price was around USD875/mt EXW excluding 3% VAT and by now it has reached USD757/mt.
By Wednesday last week as Eid-al-Adha was near, decreasing trends stopped.
UAE and Turkey origin debar is offered for USD640-650/mt cfr Southern Iranian ports.
Flat products
Flat products prices were dropping during last week in Iran. Hot rolled coil 2 mm thickness decreased around USD 19/mt and reached USD675/mt fot Anzali including 3% VAT. Price of HRC 2.5 mm or up was more stable but demand so limited. Average price of HRC 2.5-15 mm was USD737/mt in Tehran warehouses.
CRC market is silent in Iran as demand is so scarce. HDG inventory is limited and it has experienced shortages for some thicknesses but prices are still stable.
Traders mostly are waiting hopelessly to see when subsidy reforming plan of government will be implemented. Domestic mills prices have not changed in IME and import offer prices are stable too.
2 mm HRC is offered for USD630-640/mt cfr Northern ports, Kasakhstan and Russia origin CRC is USD750/mt and HDG offer price is around USD850-860/mt CFR .