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Iran Steel Market Trend in Week 32nd 2015

Billet

Khouzestan Steel Co reduced its billet price at IME by Rials500,000/mt during last week as expected. Its billet size 150 mm had reached Rials12.2 million/mt including 9% VAT in retail market and base price reduction had been anticipated.

Generally billet size 150 mm was Rials12.2-12.5 million/mt ex-works depending on the producer.

At the moment some domestic mills are in summer stoppage and production level is not expected to change significantly when they come back. Besides, imported billet CIS origin is not lower than USD300/mt cfr Iranian ports; therefore it is not affordable for importers. Domestic production at current prices is not profitable for the mills and may be forced to cut production in coming future.

 

Long products

Long products were downward during last week in Iran. Two main reasons behind this trend were:

1- Lack of demand especially in current weeks, everybody is in wait and see policy. Transactions have almost stopped.

2- Reducing billet base price by market leader Khouzestan Steel Co, which will be followed by other mills in near future.

These two factors made long products price downward during last week except I-beam. Downward trend will be more visible in coming days. But for I-beam, low supply level from Esfahan Steel Co especially for size more than 20 mm made price up. For sizes lower than 20 mm especially 14 mm, there are alternative producers in the market and would be difficult for the market leader to increase its price by low supply policy.

 

Flat Products

Hot rolled coil 2 mm thickness was almost stable during last week at Rials15.5 million/mt on truck in Anzali including 9% VAT. Foreign suppliers have reduced prices but import level has declined as it is not profitable any more.

For HRC thickness 2.5-15 mm from Mobarakeh Steel Co, prices were downward affected by current weeks higher supply level. Everybody was in waiting policy, but service centers increased offers level. This trend made HRC market down by Rials 200,000/mt, which is expected to continue as demand level is scarce.

HRP market was almost stable during last week, but market participants expect downward trend in near future. Market leader Oxin steel co is trying to stabilize prices by lower supply , but lack of demand and lower prices in global markets has made downward trend anticipation more likely.

CRC market was unchanged, except for thickness 50 mm which higher supply level from Mobarakeh Steel Co made its price lower. HDG market was also depressed with its price decline by Rials200,000/mt.

 

Ex-rate:
In Exchange Room: Rials 29,708 /1USD       
In free market: Rials 33,440/1USD

Iran Steel Service Center

 

Aug 9, 2015 10:12
Number of visit : 1,094

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