Billet
Billet market
continued its downward trend in Iran during last week. Domestic billet size 150
mm from Arfaa Steel Co declined from Rials10-10.1 million/mt to
Rials9.9million/mt ex-work including 9%VAT. Buyers were much eager to purchase
from private sector producers at Rials9-9.2 million/mt ex-work including 9%VAT.
Domestic billet size 125 mm was Rials9-9.1 million/mt ex-works including VAT.
Generally, as many
longs producers have stopped production, lower billet demand has made its market
downward but slowly.
Long Products
Debar price was
unchanged by beginning of last week, but from Monday onward dropped daily by Rials100,000/mt
for some sizes. For debar diameter 14-25 mm, it was priced at Rials11.9million/mt
ex-works including VAT by beginning of the week in Esfahan market and was
almost stable during the week. But for other producers its price dropped by
Rials200,000/mt.
Average domestic I-beam
price size 14,16,18 mm fluctuated and declined from Rials14.43million/mt to
Rials14.34 million/mt ex-works including VAT.
Angle and channel
were also downward between Rials100,000-500,000/mt with sellers eager to
discount more for higher sale level. Angle and channel are being produced by
cheap domestic billet size 125 mm, therefore it has profit margin for producers
and have more space for further declines.
Flat Products
Imported HRC 2 mm
thickness started week 5th at Rials12.5million/mt on truck in Anzali
port including 9% VAT and custom duties and Rials12.2 million/mt on truck in
Imam Khomeini port, with sellers ready for more discounts and accepting delayed
payment terms. But prices continue declining as current weeks and it was down
by Rials300,000/mt at Anzali port and Rials200,000/mt at Imam Khomeini port.
HRC 2.5-15 mm from
domestic leader Mobarakeh Steel Co experienced a stable week due to lack of
supply.
HRP market was also
quiet due to supply shortage from 2 market leaders Kavian and Oxin Co. Russian
material arrived at Anzali port and satisfied demand. During last 20 days Oxin
co supply level has been limited. Retail market price is
Rials13.8-13.9million/mt including 9% VAT, but the mill insists on selling at
Rials14.5million/mt excluding VAT. But global prices are downward and this
policy will lead to just higher import level.
Domestic producers should follow market sentiment as demand level is so
scarce.
CRC market was also
calm and depressed. CIS origin CRC was Rials1.6million/mt on truck in Azanli
port including VAT and custom duties. Russian sellers are not eager to give
more discounts due to absence of Chinese suppliers for Lunar New Year Holidays.
Market participants expect downward trend after Chinese suppliers come back to
market as everything including oil price is decreasing.
HDG market was also
downward by Rials300,000/mt for some sizes like current last weeks.
Ex-rate:
In Exchange Room :30,180 Rials /1USD
In free market : 36,200 Rials /1USD