Billet
Billet market was downward during last week in Iran. By Monday onward after ex-rate dropped, billet transactions level decreased significantly.
By Wednesday imported billet price was around USD730/mt on truck in Anzali including 6% VAT and custom duty and is not expected to change in coming days. Market participants believe billet price is around USD706-747 as minimum and maximum levels at Anzali port. Besides, import level is declining. The reason is that besides banking problems, cheaper domestic billet is making buyers more interested in domestic market.
Generally billet demand is declining and has made scrap price decrease by USD81/mt despite the fact that scrap price usually drop after a long time and very hard.
Long products
By beginning of the week long products market was waiting for IME transactions level. By Sunday market sentiment become positive and transactions level increased. After ex-rate improved by Monday, long products prices increased but started declining again by afternoon. Prices were down till end of the week. At the current situation best policy is waiting and any significant change in coming week is unlikely. Besides prices have bottomed and won''t decline unless ex-rate drop significantly and influence prices.
Demand in long products market in Iran is almost nothing as many projects have stopped. Many traders expect more declines in prices, so as steel mills'' liquidity margins is very depressed and demand level low, more cuts in supply level is unavoidable.
The pressure on steel mills is increasing per day and if one of them starts declining prices, surely market will drop harshly.
Flat Products
Hot rolled coil 2 mm thickness started week 27th by transacting at USD819/mt on truck in Anzali including 6% Vat and custom duty, but become downward by around USD8/mt till end of the week.
HRC with thickness 15 mm or higher, was in the same trend but its demand level dropped significantly.
CRC market experienced declines up to USD8/mt as its supply level is limited too. HDG market was in the same situation as other flat products.
Generally speaking, Iran steel market is in a wait and see policy at the moment and is waiting for new president starts working.
(Ex-rate: In Exchange Room: Rials 24,779/USD)
Iran Steel Service Center