Billet
Billet price was almost stable
during last week in Iran. Imported billet size 150 mm was transacted at
Rials13.2-13.3 million/mt on truck in Anzali including 9% VAT. Domestic billet size 150 mm was stable at
around Rials13.1-13.25 million/mt including 9% VAT depending of place of
delivery.
Improvement in iron ore market has
led to higher billet price at Iranian northern ports to around USD350/mt cfr.
Therefore, by using free market currency rate, finished price of billet would
be higher than current sales prices. Besides, due to quiet sentiment in long
products market, billet demand level in downward. In this situation, billet
mills have reduced production level. Any improvement in billet price seems
unlikely due to lack of consumption.
Long products
I-beam price was upward during last week
in Iran. It is expected to continue rising as market leader Esfahan Steel Co
supply level at IME ( Iran Mercantile Exchange) will be limited in short time.
But, demand level is not interesting at the moment.
Debar price didn’t change and limited
supply helped market sentiment. Currently, many bids are being received by
producers from end users. Therefore, market participants expect better
transaction level in coming weeks.
Merchant bars market generally
experienced a stable week, but in some cases prices increased by
Rials200,000/mt.
Flat products
Hot rolled coil 2 mm thickness had a
stable week. Its price improved by Rials150,000/mt to Rials16.65million/mt on
truck in Anzali including 9% VAT. HRC 2.5-6 mm thickness declined by
Rials100,000/mt despite low supply level. Thickness 8-15 mm also dropped by
Rials200,000/mt. Higher competition between sellers influenced market negatively.
In HRP market, prices were stable as
Kavian Steel co (one of market leaders) was absent and Oxin co supply level was
limited. Some Chinese offers at Imam Khomeini ports are available which will
affect market sentiment in coming weeks.
CRC market was downward in Iran during
last week. Global CRC market is not declining any more, but inventory level in
Iran import market has not absorbed yet, though prices are down. Market participants
expect some improvement in market sentiment and prices in coming month, as
inventory level will decline.
HDG market also experienced a quiet week
with prices unchanged.
Ex-rate:
In Exchange Room : Rials 28,460
/1USD
In free market : Rials 33,200
/1USD
Iran steel service center