Billet
Billet market was slightly downward by Rilas200,000/mt during last week in Iran. Billet size 150 mm was offered in import market at Rials17.4million /mt on truck in Anzali including 8% VAT and custom duties. Domestic billet size 150 mm was transacted at Rials17.2 million/mt ex-works including 8% VAT but at limited tonnage. Size 120 mm was offered at Rilas16.3-16.5 million/mt ex-work including 8%VAT.
Last Saturday, Khouzestan Steel Co sold 36,800 tones of its billet at Rilas16.02 million/mt ex-work excluding VAT . The deal final cost price after 8% VAT would be more than Rilas17.3 million /mt. Market participants are waiting for Khouzestan Steel Co new offer price at IME. As the producer is active in export market, price reduction in domestic offers may be unlikely.
At the moment Iran billet market is not in a clear direction and steel mills prefer buying at limited tonnages. Consumption level is low and market players are waiting for final result of nuclear negotiations with 5+1.
Long Products
Iran long products market was almost downward during last week. Debar average price dropped by Rilas100, 000/mt on Monday to reach Rilas18.4 million/mt ex-work. But I-beam price was upward especially for sizes14, 16 and 20 mm. The upward trend stopped by Tuesday as market stopped working by Wednesday due to holidays. Equal angle and channel price were unchanged. At the moment market is in wait and see policy.
Warehouses are still full of cheap purchased inventories and demand level in real estate market is limited.
Re-rollers have tried to fixed prices during last 2 weeks by lowering supply level as declining prices is not affordable for them.
Billet price in domestic market is Rials16.2million/mt ex-work excluding 8% VAT, so final cost price of debar for a producer won’t be lower than Rilas18 million/mt after different costs. Lowering production level is most producers’ policy at the moment. If inventory levels don’t decline before Holly Month Of Ramadan (Begins by 29th June) , market should expect a significant change in prices as seasonal demand would drop.
Flat products
HRC 2 mm thickness was offered at Rilas19.5 million/t on truck in Anzali including 8% VAT and custom duties by last Saturday but dropped by around Rials200,000/mt during the week. The same cargo was offered at Rilas500,000/mt lower at Imam Khomeini Port in Southern part of Iran which made market quiet. At the moment HRC import price is USD550-560/mt cfr Northern ports and USD630/mt cfr Southern ports which is South Korean product. Importing HRC from Korea will continue in near future as allocating currency from exchange room for importing from Korea takes just around 3 weeks.
Other sizes of HRC ( thickness up to 10 mm) had a quiet market with prices down by Rials500,000/mt . In plate market low demand level didn’t let prices improve.
Ex-rate:
In Exchange Room: Rials 25,593/USD
In free market: Rials 32,800/USD
Iran Steel Service Center