Billet
Billet market was downward during last week in Iran. Billet size 150 mm was priced at USD704/mt on truck in Anzali including 6% VAT and custom duty and a deal was done at USD696/mt but price was again upward to finish the week at USD702/mt. Nevertheless, demand level was low and market was in wait and see mood.
During second quarter of current Iranian Year (from 22 Jun-20 Sep) Iran billet import level was downward respectively from 137,000 tones to 35,000 and 30,000 tones. But transactions level at IME (Iran Mercantile Exchange) was almost upward during the time, down from 212,000 tones to 197,000 but increase again to 283,000 tones.
These numbers show that if import market faces with banking problems like current months, domestic producers can get more share of the market and satisfy domestic demand. If import level improves, domestic producers especially small mills will damage as billet price will drop harshly.
Long products
Long products market was upset during last week in Iran. Big traders preferred holding wait and see policy. Debar dia 14-25 mm was around USD748/mt ex-work in Esfahan. I-beam price was downward till middle of the week, then after ex-rate improved, market sentiment was better and average price of debar increased from USD3/mt to USD754/mt . I-beam price improved from USD755/mt to USD791 /mt.
Market participants are waiting for some drops in prices as it was rumored that domestic mills have high inventory level despite production cuts and prices will drop more by USD40/mt in near future. But it seems mills are resisting against such declines as some transactions of debar were done at USD718/mt ex-works which helped market sentiment.
There was some news in the market that debar export market will be active in coming future, if this happen, domestic market sentiment will improve too.
Market participants hope government will help steel industry to have a better situation.
Flat products
HRC 2 mm thickness experienced some fluctuations during last week as its price was USD738/mt on truck in Anzal including 6% VAT and custom duty by beginning of the week then it dropped to 722/mt and rose again to USD742/mt by end of the week.
Other sizes like 2.5-15 mm thickness also experienced such fluctuations. HRP products from Kavian Steel and Oxin Steel mill had limited fluctuations, dropped up to USD6/mt as supply level is being controlled.
CRC price fluctuated around USD8/mt and HDG price also dropped but finished the week unchanged.
Flat products market is in low inventory, so prices have not fluctuated severely. Besides, ex-rate volatilities do not affect flat products market like long products.
Iran Steel Service Center
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(Ex-rate: In Exchange Room: Rials 24,795/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.