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Iran Steel Market Trend in Week 36th 2015

Billet

Billet market was slightly down with size 150 mm from domestic leader Khouzestan Steel co reaching Rials11.7 million/mt ex-work including 9% VAT, down by Rials200,000/mt. Other domestic producers were offering at Rials11.8 -12.2 million/mt ex-work including VAT. Generally, market was quiet and demand limited.

Russian billet sellers were checking Iran market with some offers, looking for real bid price of Iranian importers. Lower Ruble rate against Dollar, quiet economic view and winter season near, has made CIS billet producer more interested in increasing export level. But in Iran, billet importers bid price won't be higher than USD280/mt cfr Northern ports as domestic billet price is downward and their cost price after clearing the cargo from custom office would be Rials11 million//mt. Therefore, USD280/mt would be logical price for import. Apart of that, at the moment there is no interest in importing billet at all.

 

Long Products

Long products market passed a quite depressed week with market participants just waiting for a clear direction. As demand level is significantly related to government projects, demand was also scarce.

Debar price dropped by Rials100,000-150,000/mt. Khorasan Steel Co started the week with Rials200,000/mt decline and this trend was followed by other producers like INSIG co which declined its price the same by Rials200,000/mt.

Price of I-beam size more than 20 mm increased a little, just due to market leader Esfahan Steel Co controlling policies not better demand. This made market sentiment better for some producers which are offering  I-beam 30% cheaper than Esfahan Steel Co.

Other long products were downward. Angle price declined by Rials400,000/mt. Channel price also declines. Imported channels from Turkey were also down by Rials200,000/mt despite problems after closure of Sero frontier and higher ex-rate.

Market participants expect long products continue decreasing in near future as a rumor about lower billet price by Rials300,000-500,000/mt was scattered in the market. Whether this rumor is true or not, would affect long products market due to lack of demand.

 

Flat products

Imported HRC 2 mm thickness experienced Rials200,000/mt decline to reach Rials15.6 million/mt on truck in Anzali port including 9% VAT. Chinese product in Imam Khomini port was also down by Rials100,000/mt to Rials15.4 million/mt on truck including 9% VAT. Higher supply level and lack of demand made prices downward.

Price of HRC thickness 2.5-6 mm from Mobarakeh Steel Co declined by up to Rials300,000/mt depending on supply level. For thickness 2.5 mm decreasing level was significant but for thickness 4 mm it was just by Rials100,000/mt. Sizes 8-15 mm from Mobarakeh Steel Co had a stable market but the story for Kavian and Oxin co products was different.

Kavian HRP dropped to under Rials17 million/mt by last Saturday and Oxin HRP also started declining by Sunday to reach Rials18 million/mt or lower by end of the week. This downward trend will continue as Rials1 million/mt gap between prices of these two mills is not logical.

CRC ,market was stable during the week, but demand is still limited. Importing CRC is not economically affordable for importers therefore import inventory level has declined currently. Import offers have also decreased to USD410/mt CFR Northern ports. There had been good orders by Russian and Kazakh mills at this price which will arrive Iran 2 months later. Koreans are also offering at around same price.

HDG market was also quiet and experienced Rials200,000/mt downward trend during week 36th.

Ex-rate:
In Exchange Room: Rials29,959 /1USD       
In free market: Rials34,110/1USD

 

 

Sep 6, 2015 11:42
Number of visit : 792

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