Billet
Billet market experienced a stable week in Iran and supply demand level didn''t change till Wednesday which higher exchange rate made sellers out of market. Imported billet size 150 mm was priced at USD697-701 /mt at Imam Khomeini port including 6% VAT and custom duty and USD711 /mt at Anzali port. Lack of demand has made transaction levels so limited. Billet import level has been downward during last current months. It dropped to around 35,500 tones in last Iranian month ( 23 Jul-22 Aug) compared to around 137,500 tones during a month ago (22 Jun-22 Jul).
There are three reasons behind lower billet import level, including:
1- High liquidity needed for importing billet. Investors prefer working at other markets like Iran Mercantile Exchange.
2- Limited demand level in billet market
3- Higher domestic billet production level
Nevertheless, if demand level improves, billet import level will increase again as its price will rise and importing would be more profitable.
Long products
Long products prices were downward during last week in Iran. Debar average price dropped to USD766 /mt. I-beam price was downward too. Angle and UNP prices declined by USD 2-8 /mt, depending on their sizes. Downward trend was reversed on Tuesday but at limited level. Debar price improved up to USD6 /mt and Angle and UNP by USD8 /mt. The reason behind price increase was just higher ex-rate.
By Wednesday afternoon when ex-rate started dropping, Steel products prices became downward too. By first half of the week when prices were upward, some traders hopeful about more improvements, increased purchases, so transactions were mostly for stockpiling not real demand.
At the moment market is not ready to accept any price increase and fluctuations are due to other factors like ex-rate changes or political matters. Debar average price was almost the same as week beginning and price of I-beam size 14-18 mm increased by Just USD5 /mt. As traders have mostly increased inventory levels, market participants do not expect any significant change in market trend in coming days.
Flat Products
Price of HRC 2 mm thickness changed from USD756 /mt to USD758/mt at the end of last week. Meanwhile its price reached USD766/mt during the week, and then dropped again.
Other sizes of HRC had a quiet week like other steel products till middle of the week and rise by USD4 /mt after ex-rate improved.
Domestic demand of flat products is limited at the moment, besides import level of HRC was doubled compared to a month ago and reached 84,093 tones during last Iranian month (23 Jul-22 Aug). High import level and low demand has made market silent and domestic mills have no competitive strength.
CRC market was quiet. When ex-rate improved many sellers stopped offering but after its decline, prices were like beginning of the week. HDG market was calm and quiet like last weeks.
Steel demand level has bottomed at the moment in Iran and market participants are holding wait and see policy.
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(Ex-rate: In Exchange Room: Rials 24,812/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
Iran Steel Service Center