Billet
Iran steel market has been activated after New Year holidays. During last week, 150 mm billet price was up around $10/mt week on week at $641/mt fot Anzali port including 4% VAT. But sections market’s depressed trend and government policy for freezing debar price, did not allow billet price to improve and made it $5/mt lower in the middle of the week.
By Tuesday, there was a rumor in the market that no billet order from Russia, India and Turkey would be booked through third party. But market weak sentiment didn’t let prices increase or make supply in shortage.
At the moment, billet inventories at Iranian ports are enough for buyers need. 150 mm billet was transacted at $637/mt fot Anzali port and $615/mt at Imam Khomeini port. In import market, different origin’s offer price for 150 mm billet is $630-640/mt cfr Northern ports.
Market future trend is not clear and prices in global markets are falling, so buyers prefer to hold wait and see policy.
Long products
Iran long products market is being influenced by two main factors including:
1- High supply level
2- Very low demand and ambiguous trend
Last year debar purchases in Tehran Metal Exchange for delivery of first two months of the New Year ( April- May), are coming to the market so market may face oversupply problem.
Though, traders are not interested in buying. At the other side, billet and debar price are dropping globally and every body prefer holding purchases.
Government construction projects are not active and yet waiting for liquidity and New Year budget has not announced yet, so construction steel demand is weak and future trend not clear.
Some market participants are hopeful about increasing demand during next 2 or 3 weeks and higher activity in the market.
Flat products
Last week, many mills started supplying in the flat products market in the New Year at high levels. Mobarakeh Steel mill offered CRC at high tonnages. Some traders offered Mobarake CRC in 500 tonnes parcels at $897/mt ex-work, including 4% VAT. Last year’s transacted parcels of HRC 15 mm, Mobarake Steel co production, are coming to the market. As a result, market price for HRC 10-15 mm was depressed, prices down by $10-29/mt. HRC products of other mills like Oxin Steel and Kavian Steel was being offered in the market by traders that bought it last year, so high supply pressured the market.
Demand of Oxin Steel 20 mm HRC was more than its supply level, but by availability of Kavian Steel products, prices were down by $15/mt to $805/mt ex-work.
HDG price was almost stable. 2 mm HRC price was down by $10/mt at $714/mt fot Anzali port including 4% VAT. At the end of the week some 5,000 tones were offered at lower prices, so we shouldn’t expect any improvement during next week.
Iran Steel Service Center