Billet
Billet market
continued its downward trend in Iran during week 7th. Khouzestan
Steel Co billet dropped by Rials100,000/mt despite limited supply level and
finished last Iranian month (21Jan-19 Feb) at Rials9.5 million/mt ex-work
including 9% VAT. Seems that Khouzestan Steel Co has reached some agreements
regarding expanding its export level.
Imported billet
price was Rials9.4-9.45 million/mt on truck in Anzali port including VAT and
custom duties. Domestic billet size 120 mm was also Rials8.9-9.4 million/mt
including VAT.
Long products market
is downward and won’t let billet market improve in near future.
Long Products
Long products continued dropping during
last week in Iran. Average price of Esfahan Steel Co debar diameter 14-28 mm
declined from Rials11.617 million to Rials11.267 million/mt ex-work including
9% VAT. I-beam size 14-28 mm also dropped by Rials17,000/mt to Rials14.2
million/mt ex-work work including 9% VAT despite expectation of
Rials100,000-200,000/mt improvement. Angle and channel were almost stable, with
some sizes experienced around Rials200,000/mt decrease.
Khorasan Steel Co declined its debar
price by Rials300,000/mt during last week and this downward trend made its
debar price the most competitive one in Iran market. Esfahan Steel Co resisted
against this decline. We have just two working weeks remaining for this current
Iranian year, therefore, every mill eager to increase liquidity at the end of
the year should decrease its products prices. But their margins are at the
bottom and can’t afford to decrease prices significantly.
Flat Products
HRC 2 mm thickness was stable during last
week at Rials12.1million/mt on truck in Anzali including VAT and custom duty.
2.5-6 mm thickness HRC from domestic leader Mobarakeh Steel Co was stable due
to limited supply level. For thickness 10-20 mm, prices dropped by
Rials200,000/mt because of Chinese and Russian material offered in the market.
HRP market was faced with limited supply
level of Oxin Steel Co therefore many traders were looking to purchase from
import sources. Oxin Steel Co is not protecting its market share and is just
thinking about a clean balance sheet by end of the year. The mill will have to
decrease its price by next Iranian Year if import material became competitive.
This will also affect the traders that have bought at higher prices before.
CRC was in limited supply level, but
demand was also scarce and traders were ready to give discount to real buyers.
HDG market was also downward and prices
dropped by Rials300,000/mt.
Ex-rate:
In Exchange Room :30,187 Rials /1USD
In free market : 34,662 Rials
/1USD