Billet
Billet market was stable during week 24 in Iran. Billet size 150 mm started the week at Rials12,000,000/mt on truck in Anzali including 5% VAT and didn't change till end of the week. During first 22 days of current Iranian month, around 81,984 mt of billet has been imported to Iran, but during last month it was around 194,159 mt. Billet price is downward in global markets, but problem of opening LC for importing and politic issues has affected billet import level in Iran. Iranian traders are more interested in buying from domestic market at the moment.
During first month of current Iranian month around 136,190 mt of I-beam and debar has been sold at IME ( Iran Mercantile Exchange) and it reached 315,091 mt in current month. So lower billet import level has not affected long products supply level. Domestic billet supply level has helped the market too. Demand level is scarce, so any change in sections prices is unlikely, unless another factor affect price level.
Long products
Long products prices were downward last week mainly due to political issues. Market is waiting for final result of nuclear negotiations. Average price of debar diameter 5-32 mm was Rials 13,422,000/mt in Ahvaz market which dropped to Rials 13,300,000/mt at the end of the week. In Isfahan market price of debar diameter 16-25 mm decreased from Rials13,717,000 to Rials13,552,000/mt. I-beam size 14-18 mm price also dropped around Rials 256,000/mt to Rials 11,667,000/mt. At the moment long products market is facing around 2-5 days gap for delivering cargoes due to hot weather. Merchant bars were upward till middle of the week and then started decreasing.
Inventory levels has bottomed and has affected market sentiment. If demand level rises or exchange rate changes, market will response immediately. General expectation is that prices should rise as supply level has dropped. Besides, market participants are expecting higher ex-rate which would influence long products prices too.
Flat products
During second half of last week, HRC 2 mm thickness experienced Rials 500,000/mt decline to around Rials 10,500,000/mt on truck in Anzali including 5% VAT. The product is main raw material being used for pipe and profile production which themselves have a silent market. As a result HRC market is depressed. During previous 3 months, HRC 2mm thickness import level has dropped significantly and domestic supply level is low, therefore market participants expect some improvements in HRC price trend. For other sizes of HRC up to 15 mm thickness, Mobarakeh steel mill's prices increased during first 2 days of the week and dropped again by end of the week. Prices fluctuate by Rials150,000/mt. For HRC 15 mm or higher thickness, prices were up by Rials150,000/mt during week 24. These products market is facing with high competition from import cargoes.
CRC and HDG prices increased till middle of the week then stabilized. During second month of current Iranian month around 8,200 mt of HDG has been imported to Iran which shows around 50% increase compared to first month of the year. But in CRC market during first month of current Iranian year around 24,700 mt has been imported but during first 20 month of current month it dropped to 1,762 mt. But CRC supply level of Mobarakeh Steel in domestic market has increased. Mobarakeh Steel has sold 25,150 mt of CRC during first month of the year, which increased to 93,390 mt in second month and during last 24 days of current month it was 63,930 mt. Average delivery time of CRC in Iran market is around 2 months, though any change in prices would be limited for Mobarakeh Steel products. It should be noted that for CRC and HDG with 0.60 mm thickness or lower, have limited supply level in Iran market.
(Ex-rate: Official: Rials 12,260/1 USD Market: Rials 17,700/ 1 USD
Iran Steel Service Center