Billet
Billet market was almost stable during last week in Iran. Billet size 150 mm was offered at USD696/mt on truck in Anzali including 6% VAT and custom duty, which was unchanged by end of the week.
Billet supply level has declined obviously in Iran but long products market is depressed, so lack of demand won''t let billet price to fluctuate.
Long products
Long products market was downward during week 41st in Iran. Average debar price for sizes 14-25 mm was USD755/mt in Esfahan retail market, but dropped by USD10-12/mt by end of the week. Debar size 8-32 mm was also priced at USD760/mt in Ahwaz market, then declined by USD12/mt till during the week.
Long products market is in wait and see policy. Low margins and high risks have made market activity almost dead. Many domestic mills are facing with high inventory level and reduced production. But raw materials prices have not dropped. Market participants believe that current market prices are the bottom level and mills are not satisfied enough to produce actively as it won’t be affordable for them.
Flat products
Hot rolled coil 2 mm thickness experienced some fluctuations during last week. It started the week at USD763/mt on truck in Anzali including 6% VAT , then increased to 803/mt and finally finished the week at USD779/mt. As Mobarakeh Steel Mill stopped loading some sizes of HRC, limited market inventory made price improve by USD8/mt but market activity was limited as it is not ready to accept any price increase.
For HRP products from domestic producers Oxin and Kavian Steel mills, prices improved by USD4/mt, but transactions levels are limited despite low supply level.
CRC price improved by about USD6/mt during last week due to low availability in Iran. It finished the week at stable prices. HDG price also increased by USD4/mt due to CRC price fluctuations. These two flat products markets are depressed and limited deals are being finalized.
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Iran Steel Service Center
(Ex-rate: In Exchange Room: Rials 24,911/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.