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Iran Steel Market Trend in Week 41st , 2015

Billet

Billet market was downward marginally during last week in Iran. Khouzestan Steel Co billet size 150 mm started the week at Rials11.4-.11.5 million /mt ex-work including 9% VAT. By middle of the week market participants were expecting Rials500,000/mt decline , then price reached Rials11.3million/mt. By Wednesday, the market leader sold 65,000 mt of size 150 mm at base price of Rials11.5 million/mt at IME which was a matching contract.

Market participants expect downward trend continue in domestic billet market as global prices are downward and CIS origin billet is around USD295/mt.  China market was close due to National Holidays, therefore in coming days China market trend will influence Iran billet market too. Based on demand level and also long products market trend, billet price would be downward.

 

Long products

Long products market started declining from Last Sunday onward. Debar price dropped to under Rials13 million/mt for the first time during last 3 years. Khorasan Steel Co debar was priced Rials12.9 million/mt ex-work including 9% VAT. By Tuesday, distributers of Khorasan Steel Co debar decided resisting against downward trend and don’t sell lower than Rials13.05 million/mt. This policy made market stable. Khorasan Steel Co produce billet itself, therefore lower cost price allow him reduce debar base price and increase the gap from other mills prices. Debar bottom price would be Rials12 million/mt , but at this price many mills will be forced to close.

I-beam price was stable during last week as Esfahan Steel co supply level was limited. Size 18 mm started rising by middle of the week, but demand is scarce and upward trend won’t last long.

Esfahan Steel co reduced debar supply level by last Wednesday, but it helped increased Khouzestan Steel Co billet sales, despite better debar price.

Other long products were downward unless imported UNPs. By middle of the week Esfahan steel co decreased UNP supply level and it made its price improve. Demand is low and price will be stable in coming days.

 

Flat products

HRC 2 mm thickness was downward and reached Rials14.9 million/mt on truck in Anzali including 9% VAT. High import level during last 2 months has made HRC price downward. CIS origin 2 mm HRC was stable at USD340/mt cfr Northern ports and Chinese product was not offered due to Holidays there, but it was strictly downward in Iran market. From late September till now around 300,000 mt HRC has been imported, but its monthly import level had been around 65,000 mt before.

For size 2.5-15 mm thickness from Mobarakeh Steel Co, domestic price declined by Rials200,000/mt, especially for sizes 8-15 mm which was competing with other domestic producers and also import market.

HRP thickness 15 mm or higher dropped by Rials200,000/mt. Market participants expect this downward trend continue.

CRC market was down by Rials500,000/mt. Dumping import cargoes in both Southern and Northern ports are increasing the pressure on domestic market. Market participants expect government authorities support them against high import level like many other countries.

CRC base price has reached Rials18-18.5 million/mt and is expected to be lower than Rials18 million/mt in coming month. Domestic mills are feeling this pressure and should ask government to support them.

HDG market was also downward up to Rials500,000/mt. Its demand level is also limited.

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Ex-rate:
In Exchange Room: Rials29,955/1USD       
In free market: Rials34,750/1USD

Oct 11, 2015 09:37
Number of visit : 767

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