Iran Steel market trend in week 49
Billet- Future sentiment depressed
Dropping prices in long products market has lead to depressed billet market, with prices down slightly by USD 13/mt for size 150X150 mm to reach USD662/mt during last week. Also billet size 100X100 mm lost about USD20/mt but transaction levels were still limited.
As long products prices are falling, customers buy billet just for their immediate needs. Stocks are high and last months imported lots have not finished yet.
Mourning rituals of first 10 days of Moharram month and 2 days holiday of the week 50 won’t let billet market to have any important deal and prices won’t be upward.
Absence of demand and ambiguities regarding government’s subsidies reform plan will influence the market in coming weeks, so short term sentiment won’t be optimistic at all.
Long products- Import prices up, domestic prices down
During last week, government controls sections producers specially debar suppliers for their offers in Tehran Metal Exchange. As in Muharram Month market activities drop, rise in supply levels made market more silent and prices fall.
Although another reason for dropping prices is that many traders were trying to sell their stock at cheaper prices, because Due to mourning rituals of first 10 days of Moharram market would be close somehow.
Last week price of all long products dropped. The only exception was a price rise in European UNP which would come back to its current price this week due to increasing import level of the material during lat 3 months.
Sections Import offers have increased. UNP is offered for USD700/mt cfr Northern ports, UAE debar suppliers offer at AED2450 mt (USD668/mt) cfr Southern ports for immediate delivery by TT payment.
Flat products- HRC down, CRC stable
During week 49, weak demand made price of HRC 2 mm thick down to USD689/mt fot Anzali Port. Prices of other sizes were stable but transactions so limited.
CRC and HDG market didn’t change, every one is watching market sentiment in CIS countries and nobody is ordering.
Some sizes of flat products are in shortage which is being more obvious day by day. Mobarake steel mill is absent in CRC and HDG market, but limited demand don’t let supply shortage influence the market.
Import offer prices didn’t change last week and HRC was priced at USD630-640/mt, CRC at USD 750/mt and HDG about USD 850/mt CFR.
Iran Steel Service Center