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Iran Steel Market Trend in Week 15

Billet

 Billet size 150 mm started dealing in week 15 at USD1006 -1010/mt on truck in Anzali including 5% VAT. Price was up by the same day to USD1041/mt , it continued rising to USD1059/mt or more, but by Monday onward it was down and finished the week at USD1041/mt, also there was no buying interest in the market. Downward debar price and hopes in the market about positive results of 5+1 negotiations in Turkey made billet market downward.

By middle of the week Exchange rate was downward. Main reason for decrease in billet price is that more than 453,000 tones of billet has been imported during last 3 months, but besides, consumption level was low as many steel mills dropped production level severely.

If debar price continue dropping, it will influence billet market this week, but due to problems in importing, it would be limited.

 

Long Products

By beginning of last week, debar price increased by up to USD44/mt. The upward trend made traders increase supply level from stocks bought at cheaper prices during last Iranian year, so debar price became downward by higher market inventory. I-beam market was faced with same situation but Angle and Channel prices didn''t fluctuate so much. Supply shortage and low market inventory didn''t let it happen.

There would be 2 factors for current fluctuations in Long products market: Upward prices at the beginning of the week were due to hopes in the market about higher prices, but when market inventory level increased, prices became downward as demand level was low too. As Iranian New Year budget has not been approved in the parliament yet, so demand level is down.

Last Wednesday there was some news that this week Neishabour Steel and INSIG Co will supply debar in IME at USD1041/mt, but by Thursday possible offer price dropped to USD1006/mt. This would have negative influence on debar price in retail market. Any rise for debar price in current week seems impossible.

Khouzestan Steel announced new price for its billet with delivery of next month at USD882/mt ex-work, after VAT it would be USD927/mt , so final cost price of debar for a debar producer after buying this billet would be USD1057/mt.

At the moment the main factor for helping debar price would be higher base price at IME.

 

Flat Products

Flat products market started week 15 with ambiguities and finished it with sadness. Flat products supply of Mobarake Steel in IME at first working week of New Year (26 March 12) made HRC price down last Saturday. By Sunday suppliers stopped sales and this helped prices improve. But again on Monday Mobarake Steel started supplying flat products at IME , so market sentiment was ambiguous. Prices became downward, in some cases price gaps for different suppliers was up to USD13/mt. HRC thickness 15mm or higher from Oxin and Kavian Steel mills started the week upward by around USD9/mt and get down again by end of the week to last levels.

2mm thickness HRC, started the week at USD971-980/mt, reached USD1032 and dropped again to USD988/mt on truck in Anzali, including 5% VAT.

CRC and HDG markets had the same volatilities during last week. Some sizes of CRC are in strict shortage but due to low demand any improvement in price seems unlikely.

Some market participants talk about big parcels of HRC at ports which would be available in the market in coming weeks. General view says that any change in demand level will influence market prices in near future.

Iran Steel Service Center

Apr 15, 2012 13:52
Number of visit : 393

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