Billet
Currently, Iran billet market is in a harsh situation as:
1- Drops in global prices destroyed any hope of slower downward trend in domestic market.
2- Market is facing over supply of billet due to high import level of last 2 months.
3- Lack of demand in evident in sections market
4- Steel mills in need of cash, can’t afford buying billet
It seems that market sentiment won’t change till the coming new Iranian year. Though due to the current trend, billet size 150 mm was priced at USD640/mt including 3%VAT on truck in Anzali port. Market participants say lower prices are expected.
In import market billet, size 150 mm is offered at USD650/mt, but no transaction has been done at this level.
Long products
Long products were mostly downward during last week in Iran. Rebar price dropped by an average of USD10/mt and I-beam price followed the same trend. Angle and UNP prices were almost stable.
As Iranian government is controlling the market strictly and lack of demand does not let the market to improve, traders can not expect a better Market in near future. As a result, investments are changing direction and find ways in generally any other section other than steel market such as Iran Stock Exchange or Gold market,
Demand in TME is very week, market is so depressed and traders prefer wait and watch.
Flat products
Flat products market was almost stable last week; with HRC 2 mm price dropped by USD15/mt to reach USD717/mt including 3% VAT. Other sizes didn’t change. HDG 1 mm thick and higher is facing low supply, but its production capacity can easily rise in domestic market.CRC market didn’t change last week.
Kavian Steel and Oxin Steel flat products had a good week in TME as buyers were interested in booking their products. By increasing activity of Kavian Steel and higher supply, HRP price would decrease, and the current market situation won’t let any price rise happen.
Last week Kazakhstan flat products suppliers announced new prices for Iranian customers. HRC offer price was USD790/mt cfr Anzali port, CRC about USD890/mt. Current domestic prices and lack of demand, satisfy traders to wait and see what will happen in the New Iranian Year in April.
Iran Steel Service Center