Billet
Billet in Iran market is dead. The main reason is sluggish demand of sections and rebar.
Actually long product sales have stopped, so billet has no demand. Billet size 150 x 150mm, quality 5SP in Anzali offered at USD405.- CFR, custom duty abd VAT (about 8%) included but buyers are looking for USD400.- CFR, including custom duty and VAT.
Latest billet offer is USD420.- CFR Anzali, so cost price for importer is USD460.- min.
Sections
Section market in Iran is totally silent, mills are reducing their prices but even this policy does not attract demand. Chinese debar Dia 18 up to 25mm in Bandar Abbas is offered at USD470.- CFR, custom duty and VAT paid.
Isfahan Steel Plant offered its debar in Tehran Merchant Exchange at USD520.- , excluding 3% VAT, but with a very few buyer. I Beam size 180mm of Isfahan Steel Plant now is at USD645.- including 3% VAT, which has no profit for trader and even some of them suffer big loses. UNP and Equal Angle prices were stable due low supply. Most of traders prefer wait and watch policy since they believe that prices will come down.
What is important is that Iran has only 70 working days left and there is long un-working days till end of April 2010. Most of traders prefer to keep cash instead of investing in steel market.
Flats
G.I. Coil market passed stable week mostly due limits in supply. Mobarakeh Steel Complex has shortened sales of this product. Most of traders also ordered for few quantities (not more than 500m/tns).
CRC market has different situation for different thicknesses. Thickness 1.25 x 1250mm width has big demand but thick 0.90mm has big inventory. Actually, inventories is not so much since traders avoid to import and everybody expect price reduction by Mobarakeh and watch his offers.
Today import prices have very low margins and traders are afraid of Mobarakeh reduce his prices. If this happened, importers will lose. Now, CIS products offers are at USD570.- CFR north Iranian ports but most of traders expect to get lower offers in early December.
For HRC thickness over 3.00mm, market is waiting for Mobarakeh offers but for thick 2.00mm price increased about USD40 per mt and reached to USD605.- per mt including custom duty and VAT.
Totally, market in Iran is lull and demand is too weak. Such market situation has not been experienced since 30 years before. Imports of steel products are continuing and seasonal dull market is in front; meanwhile, government force companies to increase capacity.
Iran Steel Service Center