Billet
Billet market was stable during last week in Iran as domestic
producers were not offering and have declined production level. CIS origin
billet could be purchased at USD410/mt cfr northern Iranian ports but due to
rising ex-rate, importing billet has become risky. At this level final cost
price for imported billet is around Rials 15.2 million/mt including VAT.
Billet price in global market has almost reached the bottom and is around
7-8 barrel of crude oil when under USD60/barrel. If oil price drop more billet
price may decline more. Due to sanctions against Russia and depreciation of
Ruble against USD , some market participants expect up to USD20/mt decrease in
billet price.
Domestic Iranian producers have declined billet production to the
minimum, so billet size 150 mm was not lower than Rials15.9 million/mt and size
120 mm not lower than Rials15.25million/mt including 8% VAT, but long products
market is week and improvement in prices seems unlikely.
Long products
Long products market had a quiet week with declines experienced for
all products. Low billet price and expectation of negative trend made prices
downward. On Sunday prices dropped by Rials200,000/mt and by Tuesday around
Rials 100,000/mt.
During last 8 months of current Iranian year, long products prices
had been lower than same months last year, but production costs including
energy costs, wages, transportation and bank interest rate all have been
rising. During last Iranian month average price of I-beam and debar were
respectively 17% and 5% lower than the same month last year.
Domestic market is in high supply level so the solution is
increasing export rate. Domestic demand level is dropping and many small mills
are in risk of bankruptcy.
Flat products
HRC 2 mm thickness had a stable week at around Rials19.9million/mt
on truck in Anzali including 8% VAT . Chinese and Korean products were around
Rials19.9 and Rials19.7 million/mt at Imam khomeini port. Iran HRC market is
depended on import market but fluctuations in ex-rate has make import more
risky. Kazakhstan origin billet has been around USD520/mt and Ukraine origin
around USD500/mt fob. Price of thickness 5.2-6 mm declined by Rials100,000/mt
and sizes 6-15 mm had a stable week.
HRP market was in lack of
supply, but scarce demand made market quiet with no significant change.
CRC market was unstable. Domestic supply level is still limited but
Kazakh origin CRC was being offered for all sizes. High import offers would
decline prices, but higher ex-rate made prices stable.
Imported CRC is USD620-630/mt cfr Anzali port, but cost price for
importers would be Rials2.1 million/mt or more
In HDG market common trend was yet stable prices with low supply
and lack of demand.
Ex-rate:
In exchange room: Rials26,931 /1USD
In free market: Rials34,300 / 1USD
Iran Steel Service Center