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Iran Steel Market Trend in Week 18th , 2014

Billet

Billet market was downward during last week in Iran. Size 150 mm in import market was offered at Rials18.9 million/mt on truck in Anzali including 8% VAT and custom duties. Billet size 120 mm from domestic producers was offered at Rials 17.7 million /mt by beginning of the week. Size 150 mm finished the week at Rials18.25 million /mt and size 120 mm was declined to Rilas 17-17.1 million /mt.

Domestic billet supply level has increased significantly in Iran as both private and state mills were offering billet during last week.

Downward trend in long products market has made billet market down too. Some sizes of debar declined by Rials500,000/mt , so billet demand was down too.

Some market participants were talking about possible decline of around Rials500,000/mt in billet market in coming days, so market confidence is week. Some debar producers were offering their billet production in the market last week. When billet consumer is trying to sell it, surely we can’t expect an improvement in near future.

 

Long products

Lack of real demand and downward billet price made long products market downward during week 18th in Iran.

Market participants were expecting upward trend in long products prices after energy new prices were announced currently. Prices have been upward from around 3 month ago, so the gap has been filled. Higher energy prices have increased market sadness at the moment. Inventory levels are high at warehouses and domestic mills also have increased supply level during last month, so expecting downward trend for prices is logical.

Around Rilas500,000-700,000 /mt decline in billet price made buyers more waiting for lower long products prices. Prices in retail market are almost near sale prices an IME ( Iran Mercantile Exchange). Latest transaction price for Debar at IME was around Rials 18.9 million /mt after VAT and other costs, but price of debar diameter 18-25 mm in retail market is also around this level with 10 days delay payment. As s result buyers are not interested in buying from IME.

As prices are at the bottom, warehouses full of stock and no interest in buying from IME, so market is in a depressed position. Fluctuations in ex-rate also has not influenced steel market.

 

Flat products

During week 18th , HRC 2 mm thickness dropped by Rials 600,000 /mt to Rials 20.8 million /mt. HRC thickness 3-10 mm was in lack of demand so declined by Rials 300,000/mt. Demand level was scarce and prices were down by Rials300,000-400,000/mt for different suppliers’ products.

Price of HRP dropped slowly as supply level is low but demand level was limited too.

In CRC market import offers increased. Ex-rate fluctuations have direct effect on this market but demand level is low so prices were not significantly influenced.

Mobarakeh Steel Co supply level has dropped so import market has been more active, but ex-rate increase has decreased import market competitive strength. Despite lack of availability of some sizes in the market prices were up just by Rials200,000-300,000/mt.

HDG price improved by beginning of the week when ex-rate increased, but was stable during the week and demand level was low as last weeks.

 

(Ex-rate:  In Exchange Room: Rials 25,511/USD     

     In free market: Rials 33,350/USD )

Iran Steel Service Center

May 4, 2014 11:35
Number of visit : 679

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