Billet
Iran billet market experienced downward trend during last week. Billet size 150 mm was Rials15,400,000/mt on truck in Anzali including 5% VAT at the beginning of the week but finished the week at Rials15,200,000/mt. The same product was around Rials14,700,000/nt at Imam Khomeini port , but there was no buyer in the market due to Eid holidays.
Around 310,000 mt of billet was imported during last Iranian month (22 Jul-21 Aug). Also around 314,000 mt was imported a month ago. So a calm and balanced market is expected as August purchases would be delivered at September.
Some part of these purchased parcels are transacted at USD610-615/mt cfr Anzali so coming weeks Iran billet market will be faced with cheap parcels which would definitely affect debar price.
The only factor which can avoid billet price drop would be ex-rate fluctuations.
Iran steel market won''t work actively during this week as Tehran market would be almost closed from Tuesday, but import level and domestic production won''t drop, so it would affect billet price.
Long products
Nothing special happened in long products market during last week in Iran due to holidays. Prices increased around Rials 100,000-200,000/mt on Saturday and the trend continued when market was reopened on Tuesday as supply level was limited. Big traders won''t be in the market till next Sunday ( Sep 2nd ) so market is facing lower supply level. In coming days, Tehran market would be almost closed and supply shortage will increase.
Market players expect higher prices in second half of current Iranian month as Tehran market supply level would be scarce but other parts of Iran would continue working.
Latest IME transactions show that debar finished price for traders would be Rials18,000,000/mt so any drop in near future is unlikely, unless ex-rate decreases.
Flat products
Flat products market was almost stable during week 34, HRC thickness 2 mm finished the week at Rials15,600,000/mt up by Rials 300,000/mt on truck in Anzali including 5% VAT. Many parcels of this product have been bought and is on the way to Iran, so won’t let prices rise. During last month more than 54,000 tones of HRC has been imported up by 7,000 tones.
Domestic producers'' HRC price rose by Rials 200,000/mt but transactions level were limited.
CRC market was quiet due to summer stoppage of domestic mill which will come to an end in second week of September. Many parcels have been bought from Kazakhstan, but after that price has increased and they stopped transacting with Iran currently despite the fact that Iran is their main customer.
HDG market was unchanged due to market stoppage but import level has increased to more than 12,000 mt during last Iranian month. This week''s Tehran market closure would help market to stabilize, but at the moment main factors influencing market are ex-rate and supply –demand balance. Ex-rate fluctuations affect cost prices. Customers, concerning about higher prices have purchased their needs for coming months.
(Ex-rate: Official: Rials 12,260/ USD, Market: Rials 21,381/ USD)
Iran Steel Service Center