Billet-week 02- Near term improvement; unlikely
In Iran billet market, demand is silent and cold weather has encouraged lull market. Beside this current trend, rumors about removing value added tax of billet stopped the market fully during last week.
By the beginning of the week, Canada-origin billet size 150X150 mm was priced at around USD 672-677/mt on truck at Imam Khomeini Port and Russian material was around USD 677-691/mt in Anzali port. Silent trend of the market made prices drop by USD10/mt to reach USD672 at Anzali port and USD662 at Imam Khomeini Port. But despite price depressions, transaction was rare.
During 15 days of 22 Dec- 04 Jan more than 700,000 tones of billet have been imported to Iran, but in last Iranian month import level was around 770,000 tones.
Any improvement in Iran billet prices is almost impossible because:
1- Winter seasonal factor will influence the market
2- Iranian New Year is coming
3- Government price controlling policy is strictly being followed in Tehran Metal Exchange
At the moment, CIS exporters are offering billet at USD690/mt cfr Southern ports for prompt delivery.
Long products- week 02- Downward
Despite price improvements in global markets, sections market was depressed with prices declining during last week in Iran. Raw materials prices are stable and construction activities have dropped due to cold weather, but the main reason is government policy to freeze prices.
Last week, rumors about removing rebar VAT, shocked sections market so that sellers refused from offering. By Tuesday, market was a little active and prices were up by USD10/mt.
European UNP price increased during last week but just because of low supply. Debar average price was USD817/mt, angel was around USD841/mt and I-beam size 140-180 mm priced around USD 759/mt in Isfahan market.
UAE current rebar offer price is around USD 730-740/mt cfr Southern ports.
Flat products- week 02- price controlling policies worked
Flat products market had a stable week. It seems that government’s efforts to make prices stable were effective, although low demand and lull market helped these policies too.
Price of HRC 2 mm didn’t change significantly; stayed at around USD710/mt in Anzali. HDG and CRC prices were stable too. But foreign suppliers have increased prices. Khasakhstan origin CRC is offered at USD810/mt and HDG at USD920/mt cfr Anzali by LC payment. HRC 2 mm was priced up to USD710 /mt cfr but almost no transaction was done.
As prices are stable in domestic market but foreign offers have surged upward during last 2 months and are higher than domestic levels, it’s expected that import levels will drop in coming months. At the other side Iranian suppliers like Mobarake Steel can provide domestic needs.
Iran Steel Service Center