Billet- market is quiet
During passed 2 years , average level of billet imported to Iran had been around 300,000 tones per month, but during Dec- Jan, suddenly it rose to 772.000 tones and in Jan- Feb, 987.000 tones. Besides in first 12 days of the current Iranian month, about 162.000 tones of billet have been imported to Iran.
Long products prices are dropping in domestic market and government is following its policy of freezing rebar price in TME. As a result, billet market is facing great supply, low demand of sections and negative future sentiment.
Billet price in global markets is dropping and sellers have increased supply to avoid more loss. Reduction in global prices has worsened Iran market situation, as traders worried about future are trying to sell their inventories.
Billet size 150 mm started the week at USD674/mt but finished the week USD15/mt lower on truck in Anzali port. Despite price decrease, buyers were asking for lower prices.
Market is quiet and year end sentiment do not let billet price improve, so the only way to get out of this situation could be some moves in long products prices.
Currently imported billet is being offered at USD 645/mt cfr Imam Khomeini port.
Long products- downward trend continue
Last week long products prices were downward in Iran and dropped by around USD10/mt. Continued depressed market coupled with long weekend has made traders and steel mills lose their confidence.
Billet price is reducing in Iran market and has made traders more worried. About 2,000 tones of Iranian origin billet have been offered as low as USD586/mt in TME which has increased tensions.
As year end is coming and every mill is in need of cash, lower prices make the situation worse. But some market sources believe long products prices have reached the bottom in Iran.
Not only low prices but also negative sentiment of the market shows that section market in is in a terrible situation.
In import market rebar is offered at USD720-730/mt cfr Southern ports by cash payment.
Flat products- prices unchanged
Flat products market was quiet during first week of February in Iran, with many sizes facing supply shortage. Despite low inventories, government policy to control prices does not let prices increase.
As domestic demand is so scarce, flat products supply shortage can not support any increase in prices.
HRC price was stable last week and 2 mm thick was around USD717/mt including 3% VAT. During last Iranian month, about 125.000 tones of HRC was imported to Iran which has dropped by 30% month- on- month. CRC import level also reduced by 32% and reached 17,356 tones.
By lower import level, Mobarake Steel mill supported the market by supplying through its service centers, but during last month the mill’s supply level also dropped.
Flat products prices in global markets have been rising recently, so Iran market should see some improvements in coming months, if government policies and market sentiment let it happen.
Iran Steel Service Center