Billet
Billet market was quiet during last week in Iran. Size 150 mm was
offered limitedly in Anzali Port at around Rials16.95-17 million/mt on truck in
Anzali including 8% VAT. Size 125 mm from import market was Rials16.8million/mt
on truck in Anzali but domestic product was Rials16.25-16.45million/mt including
8% VAT. But demand level is low at the
moment.
Base price of Khouzetsan Steel Co billet at IME has declined by
Rials90,000/mt to Rials15.2million/mt excluding 8% VAT. But latest import offer
has been USD500/mt cfr Northern ports which is equal to Rials17.9million /mt
for importer after using free market exchange rate.
Import level has declined significantly but low demand has led to
almost stable prices. Besides, domestic supply level is enough.
It should be noted that CIS billet price may decline more due to:
1- Cold weather and lower demand for long products in Russia, which
will lead to seasonal lower prices.
2- Chinese competitive prices in Middle East .
3- Sanctions against Russia and devaluation of Ruble which has
dropped from Ruble25/USD to Ruble40/USD currently.
Domestic leaders such as Khouzestan Steel Co, Esfahan Steel Co or
Arfaa Steel Co can decline their billet price and compete with import market
but this will lead to more closures of small domestic mills.
Long products
Long products market didn’t change significantly. Average price of
debar diameter 14-25 mm was down by Rials50,000/mt in domestic market. In I-beam
market a bankruptcy announcement of one of traders made market quieter. Other
sections like angle and channel were almost stable in prices.
Low construction activities due to limited budget has made long
products demand level to almost nothing. Seasonal factor is the other reason
behind lack of demand. Producers have almost no profit margin in this
situation, and may decline production level in near future.
At the moment the best choice for Iranian long products producers
would be export market as their quality have competitive strength in Middle
East.
Flat Products
Flat products market was almost stable
during last week in Iran. 2 mm thickness HRC dropped by just Rials200,000/mt to
Rials20.4 million/mt on truck in Anzali including 8% VAT. Offers were limited.
In Southern ports, Korean origin HRC was being offered lower than previous
weeks but Indian and Chinese products were around Rials20.2 million /mt including
8% VAT. Price of HRC 2.5 mm thickness rised around Rials200,000/mt and 3 mm thickness
was scarce. HRP price was almost stable due to lack of demand.
CRC market experienced stable prices
despite lower supply level of Mobarakeh Steel Co. Some sizes were up by Rials200,000/mt.
Seems that Iranian traders have been active currently requesting for import.
HDG market was quiet with some sizes decline in prices.
Ex-rate:
In
Exchange Room: Rials 26,689/USD
In free
market: Rials 32,450 /USD
Iran
Steel Service Center