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Iran Steel Market Trend in Week 37th, 2015

Billet

Billet market was almost stable during last week in Iran. Billet size 150 mm from Khouzestan Steel Co was offered at around Rials11.8 million/mt ex-work including 9% VAT. Supply level by most producers was lowered by middle of the week.

Domestic billet size 125 mm was being transacted at around Rials11.7-11.9 million/mt ex-work including 9% VAT. Transactions level was limited as long products demand has decreased. 

Market participants move cautiously at the moment as there are rumors in the market about downward forecast for billet price. It won’t be impossible if Khouzestan Steel Co decline its billet price in near future.

CIS origin billet was being offered at 3000-5000 MTNS parcels during current week. Buyers were bidding at USD280/mt cfr Northern ports.  Oil and iron ore market sentiment is not positive; therefore there is no reason for improvement in billet price in near future.

 

Long products

Long products market was quiet during week 37th and prices didn’t change significantly. Average price of debar diameter 14-25 mm reduced by just Rials100,000/mt to Rials13.9 million/mt ex-work Ahwaz including 9% VAT. Esfahan Steel CO debar price was stable at Rials14.3 million/mt ex-work including 9% VAT. Average price of I-beam size 14-18 mm by Esfahan Steel Co increased from Rials16.583 million to Rials16.617 million/mt due to the mill controlling policies.

Generally long products market was depressed, due to seasonal factor. Many market participants are in summer holiday and transactions level has declined. The main reason is definitely lack of real demand in steel market. 

 

Flat products

Hot rolled steel coil 2 mm thickness passed an almost stable week. It was Rials15.6 million/mt on truck in Anzali port and Rials15.25 million/mt on truck in Imam Khomeini port including 9% VAT. It finished the week around Rials50,000-100,000/mt lower. In import market CIS origin was USD350-360/mt cfr and Chinese one at Rials355/mt cfr Iranian ports. Import level during last Iranian month (23 Jul-22 Aug ) was 11,000 lower month- month to 66,825 tones. HRC import has low margin for importers, therefore investors are not interested any more. For sizes 2.5-15 mm, domestic prices were stable as market leader Mobarakeh Steel Co controlled supply level. Importers of HRC thickness 2.5-4 mm were successful in selling their cargoes at Rials16 -16.2 million/mt including 9% VAT.

Kavian Steel Co increased HRP supply level for different sizes from 10 to 50 mm. Some sizes were around Rials15.6 million/mt for width 1.25 mm. This trend affected Oxin co market too. Oxin HRP sale price dropped to Rials18.2 million/mt ex-work with 9% VAT , but retail market price was heard in some cases as low as Rials17.6 million/mt. Downward trend is expected to continue.

Flat products will continue downward trend in coming future as there is around Rials5million/mt gap between Khouzestan Steel Co slab and hot rolled products. The gap is also not the same as billet- debar difference. Besides, flat products demand level is downward and will made prices decline more.

CRC market was quiet. CRC import level has increased by 12,157 tons m-m to 31,184 tones during last Iranian month. Two factors affected CRC import market currently. Firstly, currency allocation from Exchange Office has been stopped. Secondly, lower global prices especially from China have made import level increased. Chinese CRC is USD380/mt cfr Imam Khomeini port. Just around 25,000 tones of CIS CRC have been purchased at USD420/mt cfr Northern ports shipment in September- October.

HDG price declined by Rials300,000/mt and the market was depressed.

 

Ex-rate:
In Exchange Room: Rials29,954 /1USD       
In free market: Rials33,850/1USD

 

Iran Steel Service Center

Sep 13, 2015 12:00
Number of visit : 902

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