Billet
Iran billet market was stable during week 36 due to limited supply besides higher import prices. 150 mm billet was prevailing around USD801-806/mt on truck in Anzali including 4% VAT. Supply level was limited, mostly lower than 1000 tones parcels were being negotiated.
The current trend is a good chance for domestic suppliers, which fortunately are increasing in number of mills and production capacity. Domestic billet product is offered around USD772-791/mt ex-work Depending on size, producer and mill''s location.
Long products
Long products prices were downward slowly during last week in Iran, mainly due to demand shortage which has been continued from the beginning of current Iranian year ( 6 month ago) . By middle of the week sections prices were upward just because of high production costs. When producers buy billet at USD796/mt, it''s not logical to sell their rebar at the same price in IME.
By Wednesday news about decline in custom duties of debar made sections market silent. Market participants are wondering why the government didn''t omit import duties of billet despite decreasing custom duty of debar. If so, billet price would drop and would soften problems of domestic debar producers.
But by Wednesday afternoon market was more active as participants believe the drop in custom duty of debar would jut decline government''s income. It''s notable that at the current price of imported debar, cfr Iranian ports, import price is at least USD48/mt higher than domestic products.
Other long products prices didn''t face significant volatilities. Prices were downward till the middle of the week and then were back to a week ago levels.
Flat products
2 mm hot rolled coil was priced at USD938/mt on truck in Anzali but drop by around USD10/mt by middle of the week, and then limited supply made it rise to USD986/mt.
HRC thickness up to 15 mm thickness by Mobarake Steel didn''t change in price till Tuesday , but after a rise of USD86/mt in IME, retail market trend changed and prices were up USD29/mt for some sizes. It should be noted that these products consumption level is not significant.
Some sizes are very limited in market inventory. For example 2.5 mm HRC or some thicknesses of Acid Wash coils are not available in the market. Higher supply level of Kavian Steel didn''t support the market trend too. Sizes like 20 mm HRC are in obvious shortage so its price rose around USD15/mt till end of the week.
In CRC market limited supply of Mobarake Steel besides lower import level made prices upward. At the moment CRC buying interest is low but at the other hand during last months HDG import level has been limited, so HDG producers would be interested in purchasing CRC. As a result pressures on CRC market would increase as currently lower than 30,000 tones has been imported per month.
Limited market inventory for many sizes of CRC is becoming more obvious in the market, although by autumn coming and increase in power consumption, CRC price would rise more.
Iran Steel Service Center