Iran Steel Market Trend in Week 49th, 2014
Billet
Billet price was
downward during last week in Iran. Billet size 120 mm from domestic producers
was around Rials15.5 million/mt ex-work including 8% VAT and size 150 mm was
around Rials15.9 million/mt. Imported offer prices were around USD450/mt cfr
Iranian Ports which were available at both Southern and Northern ports. Billet price
is downward in global markets as CIS billet was heard lower than USD400/mt fob
and continue dropping as Ruble rate is depreciating against USD and sanctions
against Russia is affecting its billet export market. Chinese billet is around
USD410/mt fob with freight rate to Southern ports of Iran around USD30/mt.
Downward trend in iron ore and crude oil price is making billet market
depressed too.
In domestic market,
Kouzestan Steel Co sold 50,000 mt of its billet at IME at base price of Rials 14.8million/mt
excluding VAT for delivery within next Iranian month. It is Rials 500,000/mt
lower than previous sales of the mill (including VAT) .
Main challenge in
Iran billet market is not downward global prices but lack of demand in long
products market. If this continues, billet base price is expected to reach Rials
14million/mt excluding VAT at IME.
Long Products
Long products prices were declining during week 49th .
By beginning of the week prices dropped by Rials 30,000/mt, then after
fluctuations in ex-rate, market participants expected some rises in prices. But
prices were generally downward till end of the week at around Rials 50,000-100,000/mt.
I-beam price improved a little by end of the week but it wasn’t significant.
As cheap import cargoes availability is increasing, Iran steel
market is in need of government helpful plans to improve investments in this sector.
Last week news about bankruptcy of a re-roller mill near Tehran was rumored. If
current situation continue, market will face with bankruptcies more and more.
Flat Products
Price of HRC2 mm thickness which started the week at Rials 2.02million/mt,
with ex-rate fluctuations improved by Rials 300,000/mt by was down again to finish
the week at Rials 2.01million/mt on truck in Anzali including 8% VAT.
For HRC size 2.5-6 mm, market fluctuated around Rials 100,000-150,000/mt
but demand was low. For sizes 8-15 mm import competition was strong, so prices
dropped by Rials 200,000/mt.
HRP market was in lack of supply from domestic leaders Oxin and
Kavian Steel Co, but market was quiet. Some market participants expect
improvements in prices in coming days but many others think lack of demand won’t
let it happen.
CRC market was quiet, but prices were holding high as import level
is not significant and some sizes are almost unavailable. HDG price was stable
with lack of activity in the market.
Ex-rate:
In Exchange Room: Rials26,936 /1USD
In free market: Rials33,600 /1USD
Iran Steel Service Center