Billet-Year end sentiment
Billet market in Iran had a silent week. Size 150 mm was priced at USD618-623/mt including 3% VAT on truck in Anzali port. Prices of other sizes didn’t change. In Imam Khomeini port, 150 mm billet was offered up to USD584/mt and size 125 mm was around USD628 /mt including 3% VAT , but almost no transaction was done.
As New Year holidays is near, steel mills have stopped inventory building and traders ambiguous about News Year market trend, prefer to hold wait and see policy.
During last three months, more than 2m tones of billet has been imported to Iran, and it would be enough for market needs till next 60 days or more. As a result, any price improvement would be unlikely.
In global markets, by lower demand of Middle East and North Africa due to political unrests, billet price is declining and no one is in a hurry to order.
Current offer price in Iran import market for billet size 150 mm is about USD640/mt cfr Anzali, but no buyer is interested.
Long products- Year end supply decrease
Long products market was stable last week in Iran. Many traders have decreased offering in the market due to year end, some of them tried to use the situation and raise, but scarce demand didn’t let them go.
Angle and channel had an unchanged market, I-beam size 200 mm or higher start the week upward but finished it unchanged. Rebar market trend was the same.
In import market, rebar is being offered at USD670-680/mt cfr Imam Khomeini port by Turkish or UAE suppliers. European I-beam is around USD910/mt but has no buyer.
Market participants are waiting for Next Iranian Year ( start at March 21) to see government new budget and exchange rate influences on the market.
Flat products- nothing changed
By week 10, many flat products consumers will stop production for year end, so market was so silent during last week.
2 mm HRC dropped by almost USD 10/mt to USD720/mt and no change is expected for this week. Other flat products had a stable week.
New Year market sentiment (start at 21 March) is not clear for traders and they are worried about global and domestic price drops, so no one is planning for any purchase in coming months. Current trend has made prices stable. At the other hand, Mobarake Steel Complex is supplying at low tonnages and this made market more balanced. Some market participants forecast some drops in Mobarake Steel prices in coming year and also global market trend is not upward too. Import offers didn’t change, but buyers are still out of the market, as it would be more costly than domestic prices for them.
Iran Steel Service Center