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Iran Steel Market Trend in Week 22nd 2015

Billet

Billet price was almost stable during last week in Iran as long products market was unchanged. Imported billet size 150 mm ( 6 mm length) was Rials13.1 million/mt on truck in Anzali including 9% VAT. Domestic production was Rials12.8-13.1 million/mt ex-work including VAT.

Long products market is in a waiting situation and many mills are producing at minimum capacity. Though, lack of demand in billet market seems realistic.

Some market participants expect market leader Khouzestan Steel Co reduce its billet price in near future which will make long products market also downward.

 

Long products

Long products market was unchanged during week 22. INSIG Co* Debar average price dia 14-32 mm increased by just Rials42,000/mt to Rials14.875 million/mt. Average price of the same material from Esfahan Steel Co increased by Rials45,000/mt to Rials14.988 million/mt ex-works including VAT.

Market was quiet during last week. While current meeting in Iranian Steel Manufacturer's Association end in a logical decision which was about higher export capacity of big mills. This policy will give small mills better share of domestic market.  

I-beam price improved a little due to Esfahan Steel Co strict controls of market supply and lower production of other mills. I-beam size 14,16,18 mm increased by Rials117,000/mt to Rials16.717 million/mt. But Angle and Channel price declined by Rials300,000/mt.

Generally market was quiet and unchanged despite better demand level. The reason is lack of confidence in steel market as investment rate in this industry in declining.

At least market participants are hopeful about results of last week's meeting in Steel Manufacturer's Association, which shows steel producers are uniting together to experience better days for steel market.

* Iran National steel Industry Group

 

Flat products

Hot rolled coil 2 mm thickness was downward harshly and is expected to continue dropping. Its sale price declined by Rials500,000/mt to Rials15.5 million/mt on truck in Anzali including 9% VAT. In Imam Khomeini port price was Rials15.3 million/mt including VAT. Currently cost price of importing HRC 2 mm thickness in Northern Ports is around Rials15.3 million/mt  but Rials 14.5 million/mt including 9% VAT and custom costs. Therefore, importing HRC to Imam Khomeini Port would give traders better profit margins and can accept lower prices. But in Northern ports traders will face loss as they are purchasing at higher prices. Chinese products available at Southern ports is boron- added alloy steel and have Rials1 million/mt lower custom tariff compared with CIS products. Currently some Kazakh steel producers have been trying this policy as Chinese producers to export alloyed products. This will pressure domestic market and decline prices.

HRC 3-6 mm thickness is in limited supply but prices didn't change significantly. Size 12 mm was also limited but buyers resist against higher prices. Plate market experienced lower supply level from Oxin Steel Co, when production level increase prices will decline in coming future.

CRC market was quiet and depressed. Importers are ready to sell at more discounts but there is no interest from buyers.

HDG market was stable despite improvement in export level. Besides, export level may decline in coming month due to summer season sadness and lower demand during holy month of Ramadan in muslim countries.

 

Ex-rate:
In Exchange Room: Rials28,828 /1USD       
In free market: Rials33,080/1USD

 

Iran steel service center

May 31, 2015 09:06
Number of visit : 1,296

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