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Iran Steel Market Trend in Week 38th , 2015

Billet

Iran Billet market price declined during last week following global markets’ downward trend continued. Chinese billet have reached USD240-270 /mt FOB and Turkish material around USD260/mt FOB. These downward trends actually have affected Iran billet export level and its price.

Price of Khouzestan Steel Co billet size 150 mm decreased by Rials200,000/mt to Rials11.5 million/mt ex-works including 9% VAT. Private mills were not selling their billet size 150 mm at lower than Rials11.7million/mt ex-works including 9% VAT.

By end of the week, Khouzestan Steel Co sold its billet at base price of Rials11.5/mt at IME ( Iran Mercantile Exchange) the same as previous weeks. Long products are downward in domestic market, therefor billet market participants expect billet price downward trend continues.

 

Long Products

Long products experienced a depressed week as some mills with traditional customers in the past are trying to increase sale volume by advertising. Their main problem is lack of liquidity.

Debar diameter 14-25 mm dropped from Rials13.85 million/mt to Rials13.78 million/mt ex-work Ahwaz including VAT. Market participants expect more Rials100,000/mt decline in coming days. The same material in Esfahan market was Rials14.25/mt by end of the week down by Rials100,000/mt.

I-beam price was up by Rials70,000/mt in Esfahan market to Rials16.65 million/mt due to some participants speculative policies. But long products market sentiment is generally week, so any improvement would not be long lasting.

 

Flat Products

 Hot rolled Coil 2 mm thickness was down by Rials200,000/mt to Rials15.3 million/mt on truck in Anzali including 9% VAT and custom duty. It also dropped by Rials50,000/mt in Imam Khomeini port for Chinese material to Rials14.95/mt on truck including 9% VAT and custom duty. Ex-rate experienced a high record last week but HRC is still downward in Iran. It has been a long time that importing HRC has been forbidden with exchange room currency allocation but import level increased significantly during current Iranian month ( 23 Aug- 22 Sep). As global prices are downward and ex-rate improved in Iran, higher import level in coming future would be unlikely.

HRC 2.5-6 mm thickness was stable last week and 8-15 mm thickness was faced with Kavian Co competition. Kavian Co was offering at Rials16.9million/mt and affected Mobarakeh Co offers. HRP thickness 15 mm or higher experienced a sharp decline as Oxin co material dropped from Rials17.65 million to Rials17.5 million/mt. Market was still depressed with no buying interest.

CRC market was in lack of demand. By middle of the week Korean and Chinese material was being offered at Southern port of Imam Khomeini but CIS material in Anzali port was limited. By upward trend in ex-rate, CRC market didn’t experienced heavy decline. Global markets downward trend didn’t affect Iran market seriously.

CRC Price has declined by USD30/mt in Iran import market during current month, from USD450/mt cfr Northern/southern ports to USD420/mt equal to 7% decrease. Higher ex-rate has covered lower import offers in USD, so CRC market has not fluctuated significantly in Iran.

HDG market was almost stable with some sizes decreasing by Rials200,000/mt.

 

Ex-rate:
In Exchange Room: Rials29,955/1USD       
In free market: Rials33,880/1USD

Iran Steel Service Center

Sep 20, 2015 10:53
Number of visit : 847

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