Billet- Prices at the bottom
Billet market experienced some declines for size 150 mm during last week in Iran. It was down by USD10/mt to USD590/mt and USD623/ mt in Northern and Southern ports, including 3% VAT. Price of other sizes of 100 and 125 mm were stable.
Billet price has stopped dropping in Iran because of two reasons:
1-Prices have reached the bottom and should start rising sooner or later.
2- Suppliers confident about market improvements in the New Iranian Year (start at 21 March), are holding wait and see policy.
At the end of last week, 150 mm billet was transacted at USD623 /mt in Anzali port and size 125 mm up to USD 655 /mt on truck including 3% VAT. Meanwhile minimum import offer price is USD640/mt CFR Anzali port. Therefore, the gap between import offers and domestic prices has made market participants optimistic about future trend.
Long products - rebar price down
Long products prices were mostly stable last week in Iran, just debar price dropped by around USD10/mt. About two working weeks have been left for the current Iranian year, though many traders are out of market.
Last week some Steel mills in need of cash, offered debar diameter 14 mm or higher at USD726/mt for immediate delivery.
In import market an offer of USD 730/mt cfr Imam Khomeini port, showed that traders are confused and pessimistic about New Year market trend.
Supply is high and consumers are not worried about inventory levels for two coming months. Accordingly market players are worried about a continuing downward trend in prices.
Every parcel that traders buy now, should be at warehouses till around next 40 days, when New Year activities begin. As their costs will increase, they prefer to delay purchases. Demand is low and market will face supply surplus.
It''s expected that long products prices will be stable till next two months or more.
In the import market, rebar is offered at USD680/mt cfr Anzali port but no one is interested in buying.
Flat products- Year end sentiment
Year end factor made flat products prices stable last week in Iran. Demand is low and just Mobarake Steel is supplying the market at low tonnages.
By middle of the week, import offers from khazakhstan dropped by USD50/mt, but no transaction was done. Some market participants are worried about Mobarake Steel downward prices in the New Year. But it''s unlikely as flat products prices are strong in global markets.
Some shortages in supply level of some flat products was visible till last month, but now that demand is scarce, it won''t influence the market.
HRC 2 mm price was stable last week at USD735/mt in Anzali including 3% VAT other flats were stable too.
Import offer of HRC is USD730-750cfr Anzali, CRC USD790/mt and HDG about USD910/mt cfr.
Iran Steel Service Center