Billet
Billet size 15oX150 mm was priced at USD684-689/mt fot Anzali port at the beginning of last week, but as supply was higher than demand and after announcing longer weekend because of air pollution in Tehran, billet price starts falling and finished the week at USD675/mt fot Anzali. Besides market closing, government policy for controlling long products prices in IME (Iran Mercantile Exchange) was a determining factor.
Last months billet purchases are coming to the market, so downward trend will continue in the short term.
Government price controlling policy has forced many mills to work with lower capacity or completely stop production. As traders are depressed about sections market, they prefer to have more limited deals on billet. As a result transactions are almost scarce.
Import market is in lack of buyer too and billet is offered for USD630-640/mt cfr Northern Iranian ports.
Long products
Long products market trend in Iran was completely downward during last week. Factors influencing the market include:
1-longer weekend which coupled with damp market
2- Billet price dropping and pessimistic sentiment for any increase,
3-Government policy for decreasing prices in IME and competitive situation between mills as new regulations made buyers so limited.
Last week Ministry of Housing suggested construction companies to submit them parcels of more than 1.000 MT debar at low price. In the other hand if this situation continues, production levels will come down in next months.
If government avoids doing something to stimulate production levels in the coming months, many steel making mills will be closed, so when construction season come, market will face supply shortage.
Last week imported sections prices were almost unchanged compared to a week ago, debar offered for USD650-665/mt cfr Southern Iranian ports.
Flat products
During week 48, long weekend in Tehran and scarce demand made flat products market silent with so limited volatility. 2 mm HRC experienced USD8/mt increase during last week and reached USD697/mt but just due to market closing and big supplier’s absence.
As downward trend of long products market is continuing, HRC 2.00 mm price will face some falls during coming weeks.
Despite limited supply and shortage of flat products, increasing ambiguities have made traders hold wait and see policy and buy just for their immediate needs.
In HRC market many traders are upset about the future and completely out of market. Some rumors say one of leader mills will drop or may stop its production to the lowest level in next month.
In CRC market some sizes are in shortage, transaction levels are so limited but if you need 500 tones of a thickness, probably you can’t find competitive price in the market. Mobarake Steel cold rolled sheet is available in the market with stable price, but if demand changes, its price will increase very fast.
Import prices were unchanged in Iran, 2 mm HRC was offered as high as USD630/mt, CRC USD745/mt and HDG at about USD850/mt cfr.
Iran Steel Service Center