Billet
Billet market finally stabilized during last week in Iran. Market
leader Khouzestan Steel Co was not offering in the market but its billet
nominal price was Rials11 million/mt ex-work. Arfaa Steel Co was not offering
too. Meanwhile private mills tried selling their cargoes. Prices for 150 mm
billet was Rials10.4-10.9 million/mt ex-work. In import market, Kazakh billet
was around Rials11.7 million/mt on truck in Anzali with no significant buying
interest.
Domestic billet size 125 mm was Rials10.4-10.7 million/mt ex-work,
but transactions level was limited.
As billet price is at the bottom in Iran, more downward trend seems
unlikely. If Khouzestan Steel Co declines its prices at IME, other producer’s
competitive strength will be limited and more cuts in production level will
happen.
Long products
Long products were generally stable during last week in Iran. Debar
and I-beam price didn’t change in Esfahan market but price for some sizes of
I-beam in Tehran retail market dropped.
Esfahan Steel Co low supply policy has been successful in
controlling the market. But the question is if it would continue or not.
Price of angle and channel also declined during last week as lack
of demand had lead prices to the bottom. Some import cargoes of I-beam will
enter market in coming weeks which will definitely affect domestic market
trend.
Flat Products
Imported HRC 2 mm thickness experienced higher price in Anzali port
during last week in Iran due to lower supply level. Iranian importers have lost
a lot during current last months for the material, therefore have declined
their import level. HRC 2 mm thickness increased by Rials200,000/mt in Anzali
port to Rials14.8 million/mt on truck in Anzali including custom duty and 9%
VAT. It was almost stable at Rials14.2
million/mt on truck in Imam Khomeini port. Some foreign sellers are offering
the material at USD275/mt cfr Imam Khomeini port with payment through Dubai.
Market participants expect more declines in coming weeks as traditionally
Chinese prices will decline more in November and December.
For sizes 2.5-6 mm, prices were stable due to limited supply level.
For HRP size 8-15 mm prices were downward under the pressure from higher import
level and domestic supply despite limited demand. Oxin co HRP size 20 mm or higher declined
Rials150,000/mt and reached Rials16.5 million/mt ex-work.
CRC market was downward to lower than Rials17million/mt. Some market
participants expect prices to be at bottom. But Chinese product can be bought
at USD310/mt cfr Imam Khomeini port. Therefore, its cost price would be Rials15
million/mt after custom duty and VAT. It seems there is more room for CRC price
decline.
HDG market also experienced Rials300,000/mt drop in price due to
CRC market downward trend.
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Ex-rate:
In Exchange Room: Rials29,965/1USD
In free market: Rials34,970/1USD