Billet
Iran Billet market is still sluggish. Size 150 mm was offered at around USD 739/ mt on truck in Anzali port including 4% VAT but deals has been done at limited tonnages. The main factor for the current situation of billet market is deadly silence of Long products market. In global markets billet price is downward and importers prefer holding wait and see policy. At the other hand, exchange rate is the other problem of importers.
Almost all foreign suppliers prefer to sell based on TT instead on LC. Though, cost price of imported billet would be more than USD868/mt after custom duty and VAT, based on CFR price of USD650/mt in Anzali.
But if the transaction be done based on LC payment, cost price would be USD 721/mt.
Day by day less foreign sellers would accept LC from Iranian buyers, so importers are so much worried about the future. Fluctuations in exchange rate has made importers more interested investing in exchange market which is more secure and have lower risk, instead of steel market.
Besides, sections production level has declined in Iran so billet demand is scarce. Some market participants believe that if global billet prices stop falling, Iran market would improve too.
Long products
Section market was completely depressed during week 44 in Iran. Prices were downward and no real buyer was in the market. Debar price was down by USD10/mt, Angle and channel price dropped by USD10-14/mt. As exchange rate was upward, it made sections price drops limited. Prices have reached the bottom too. Producers cannot afford more declines as prices are close to production costs. Despite all these factors, demand level was scarce and no transaction was done.
Traders are worried about their liquidity level and financial problems. At this condition, steel market may face many bankruptcies that will affect mills budget. This negative sentiment has made transactions levels to be more limited.
Nobody expect any change in market sentiment during this week as religious holidays always make market more silent.
Flat products
Hot rolled coil market experienced a downward week till Wednesday which its price for 2 mm thickness was up from USD870/mt to USD878/mt on truck in Anzali including 4% VAT.
More import level for HRC 8-15 mm thickness has made its domestic market sadder, besides Mobarakeh Steel supply level is up too. Oxin and Kavian Steel mills flat products prices were stable last week as supply level is so limited. Just some sizes were down by USD5/mt.
CRC market was depressed too; lower global prices have made importers to be interested in selling more, so higher supply made prices down by USD10/mt. HDG price was unchanged last week in Iran due to limited supply.
Prevailing offer price of HRC 2 mm in import market is USD710 cfr Anzali port, CRC at USD750 and HDG at USD860/mt on CFR basis. But seller won''t finish deals by LC payment and prefer TT payment.
Iran Steel Service Center