Billet- Price bottomed
Billet price has reached the bottom in Iran market. Market participants are waiting to see weather it would rise in near future or not. As many mills have just 2 more working weeks for the current Iranian Year (end at March 20th ), though they prefer to decrease production. Meanwhile, long products demand is so scarce and market future sentiment is so ambiguous.
Freezed prices at TME and expectation of some price falls in coming Iranian Year, has made any future forecast worthless.
During last Iranian month (ended at Feb 19th ) around 410.000 tones of billet had been imported to Iran, together with two month ago imported tonnages, it would be more than 2m tones. Beside this higher supply, shortage of demand is obvious. Accordingly, any price increase till first months of the Iranian New Year is unlikely.
In domestic market, 150 mm billet was dropped by USD15/mt compared to a week ago and priced at USD630 and USD 600/mt on truck in Anzali and Imam Khomeini ports respectively including 3% VAT.
In the import market, CIS origin billet was offered at USD650/mt cfr Anzali, but no transaction has been reported.
Long products- Nothing good happened
Lower activity in the market and current negative sentiment, made sections prices continue dropping during last week in Iran. Despite some improvements in first days of the week, prices were downward again by middle of the week.
Steel market negative sentiment has frightened investors and when they went out the market, we would have nothing just a deeper slump market. As a result, steel mills will face many problems in the near future.
Sections prices dropped by around USD10/mt during last week in domestic market . Foreign suppliers are offering debar at USD680/mt cfr Imam Khomeini port.
Flat products- Import market depressed
During last week just cold rolled coil had a stable week in Iran flat products market.
At the beginning of the week, HDG price rose by around USD29/mt and HRC 2 mm price was up to USD725/mt on truck including 3% VAT. By the end of the week, market sentiment changed, as HDG price was back to last week level and HRC was transacted at USD712/mt. Other sizes of HRC had a better week but for some sizes especially 20 mm HRC, signs of drops appeared.
Foreign offers have not changed, but as domestic prices are more competitive, buyers are not interested in importing.
Iran Steel Service Center