Billet
Billet price was downward during last week in Iran. By Sunday billet size 150 mm was Rials16,800,000- 17,000,000/mt on truck in Anzali including 5% VAT. Buyers were working so cautiously.
Prices were downward till middle of the week, when ex-rate increased and helped billet market. But this improvement didn''t last more than a day and prices started dropping again.
Billet market is being affected by factors including:
1- High import level of last 2 months. Around 750,000 mt of billet has been imported to Iran between 22 Sep -5 Nov , besides domestic production level increased too.
2- Low demand level of long products especially debar
3- Government strict control of Steel market for lowering prices
Long products
Debar market started week 45 by Rials500,000/mt decline and low transactions level, beside buyers cautious activities. Debar spot price in Tehran market finished the week near ex-work price or at some point lower.
It seems that authorities are trying to make prices down but their policy is not clear.
Usually global prices are upward during Q 4 of each year like the upward trend has been started for CIS billet. But if global prices rise, at the current situation, Iranian producers would have problem for following this trend and rising prices.
At the moment investors do not have a clear direction in steel market and some of them prefer working in other sectors.
Flat products
HRC 2 mm thickness was transacted at Rials18,800,000/mt on truck in Anzali including 5% VAT at beginning of week 45 but started rising by middle of the week and was up to Rials19,800,000/mt. Other thicknesses of HRC had the same situation in a time that demand level is low.
CRC and HDG market were in the same situation. As demand level is low prices may start decreasing again. Besides global flat products market is depressed too.
At the moment in import market CRC is offered at USD650/mt cfr northern ports and HRC is about USD580-600/mt cfr . CRC price after custom duty and VAT and other costs would be Rials19,000,000/mt and HRC about Rials16,000,000/mt.
As authorities are trying to control steel market and decrease prices, so flat products market would be affected too and buyers will get out of market.
Iran Steel Market Trend