During last week, Iran billet market was unchanged and almost no activity was done. By Beginning of the week, billet size 150 mm was offered at Rials11.4-11.5 m/mt on truck in Anzali including 5% VAT. Its price was around this level till middle of the week with around Rials 200,000/mt stagnation. During last week some billet parcels which have been imported during last 2 months, were offered at Northern and Southern ports. These kinds of offers have made buyers more cautious.
Some decline in biller price is likely during current week as importers can decrease prices. Last week some sellers would accept delay in payment. Long products downward prices especially debar have affected billet market. Any improvement in billet price depends on debar price rise.
(Ex-rate; official: Rials 12,260/USD , Market: Rials16,700 /USD)
Long products market experienced a bad week. Debar price was downward. Its average price was around Rials13-13.1 m/mt including 5% VAT for Diameter 8-32 mm till middle of the week. By Tuesday when Isfahan Steel stopped offering, debar price rose by Rials100,000/mt. Market participants believe that this trend won''t continue as demand level is scarce and many traders are trying to destock warehouses.
Some sources hope in rises in prices, but it won''t happen unless billet price stabilize or demand level increases.
The main negative factor is low demand which has put debar dia 8-32 mm price to Rials12.95-12.97 m/mt. Traders are mostly worry about their liquidity margins. If this trend continues, mills sales would be affected by delays in payments.
(Ex-rate; official: Rials 12,260/USD , Market: Rials/16,700 USD)
Last week was a terrible one for flat products especially hot rolled coil. Price of HRC 2 mm thickness changed from Rials 10.085m to Rials 10.045m/mt on truck in Anzali including 5% VAT. For thickness 3-6 mm, also prices dropped by around Rials300, 000/mt during last week. Main influencing factor is lack of demand. Besides, some market participants are in hope of improvements in the market due to availability of HRC thickness 8-40 mm in Northern and southern ports.
CRC market was downward too. Domestic prices dropped by Rials300, 000/mt and imported one by Rials 400,000/mt. Demand level is low, so any improvement in the market is unlikely. HDG market was like CRC prices downward by around Rials300, 000/mt. imported parcels from India have made market trend more decreasing.
Lack of demand is yet the main negative factor in the market. If it continues, would affect domestic producers'' sales. Domestic banks have limitations in opening credits, importers are in trouble for opening LC, and most of them are forced to pay in cash which is like an embargo in import market.
Market would prevent from a harsh quiet market in current month just by more demand and better domestic production.
(Ex-rate; official: Rials 12,260/USD , Market: Rials /16,700 USD)
Iran Steel Service Center