Billet
Billet market was almost stable during last week in Iran. Domestic billet size 125 mm was USD658 -663 /mt ex-works including 8% VAT. By Wednesday the price dropped by USD4 /mt but finished the week at the first price again.
The fluctuation was due to the rumor that government has obliged producers to decline their products prices at Iran Mercantile Exchange. After price of long products increased in IME, this rumor also disappeared.
Imported billet was offered at USD682 -692 /mt on truck in Anzali including 8% VAT and custom duties but at limited tonnage.
Long Products
Long products prices were upward by beginning of last week in Iran, but stopped on Monday, waiting for new offers at IME. By Wednesday after offered prices at IME improved, prices were up at retail market too. Debar diameter 14-25 mm was around USD750 /mt ex-work including 8% VAT. I-beam and other sections prices were also upward.
Market participants believe that current prices are the bottom level, so try to purchase before freight rate increase. At the moment purchases are mostly just for stockpiling. This policy will control inflation rate. When freight rates rise, these inventories will come to the market and would stabilize prices.
Flat Products
Hot rolled coil 2 mm thickness was almost stable at around USD792 /mt on truck in Anzali including 8% VAT and custom duties. Higher ex-rate made HRC price increase around USD 6/mt. Other sizes of HRC were stable and quiet during last week. HRC products from Mobarakeh Steel Co were up by start of the week but were downward around USD4/mt by middle of the week. HRP market was in the same situation and real demand level is so limited.
Domestic CRC supply level is much limited but import parcels from India and Kazakhstan are being offered at limited tonnages, so upward trend in prices is not significant.
HDG market was upward by beginning of the week but became quiet by middle of the week. Both supply and demand level are low and transactions scarce.
(Ex-rate: In Exchange Room: Rials 25,507/USD)
Note: Prices have been converted from Rials to USD using exchange room rate as a base.
Iran Steel Service Center