[Your shopping cart is empty

News

Iran Steel Market Trend in Week 27th , 2014

Billet

Billet market was almost stable during last week in Iran. Esfahan Steel Co sold its billet at base price of Rials15.41 million/mt at IME ( Iran Mercantile Exchange) and Khouzestan Steel co offered at Rials15.5 million /mt ex-works excluding 8% VAT at IME. There was almost no interest in buying billet and prices didn’t change significantly. In import market billet size 150 mm was offered at Rials17.2 million/mt on truck in Anzali including 8% VAT. There was no cargo for immediate delivery in import market, so prices remained unchanged.

Another reason behind stable prices in Iran billet market is quiet construction market which has declined scrap supply level. It has made scrap price stable which affects billet price too. Billet production level has dropped and lack of demand has made price reduction almost impossible.

Besides, it should be noted that base price of domestic billet at IME has increased by just Rials500,000/mt or 3% rises compared to 4 months ago when energy prices and other costs had not increased yet. Producers are working with lower margins to survive.

 

 Long products

Long products market was downward during last week in Iran as debar average price dropped by Rials 300,000/mt. I-beam price was also declining, just sizes 14, 16 and 18 mm were upward due to lack of supply from domestic producer. Market was quiet and there was no buying interest. Some debar producers are controlling production level, so some sizes are not available in the market.

Market participants believe long products prices should decline by Rials500,000/mt as compared to billet market trend, but can producers afford such a decline anymore? Some mills may decline prices due to lack of liquidity but it may not help purchases as demand level is scarce. Though, lower prices may lead to more delays in transactions in hope of more declines in future.

 

Flat products

Price of 2 mm thickness hot rolled coil declined by Rials100,000/mt during last week in Iran to around Rials18.7 million/mt on truck in Anzali including 8% VAT and custom duties. Market is almost quiet as supply level decreased, and importers do not have much profit in sales. Though prices would stay around this level in near future.

In domestic market, HRC 2-15 mm thickness was down by around Rials300,000/mt but yet there was no buyer. HRP price was down by the same margins and demand level was limited.

In CRC market both supply level and demand are low so market is quiet. Supply level of Kazakh origin CRC has improved but Mobarakeh Steel Co offers are scarce in the market.

In HDG market, price dropped by Rials200,000/mt and market inventory level is limited.

Ex-rate:  

In Exchange Room: Rials 25,811/USD     

In free market: Rials 31,000  /USD  

Iran Steel Service Center

Jul 6, 2014 09:59
Number of visit : 758

Comments

Sender name is required
Email is required
Characters left: 500
Comment is required