Billet
Billet price increased very fast during
last week in Iran. By last Sunday, billet size 150 mm was Rials9.5million/mt on
truck in Anzali including 9% VAT and custom duty, then increased by
Rials200,000/mt and finished the week at Rials10.1million/mt.
Domestic billet size 150 mm improved by
Rials300,000/mt during the week to Rials10.2 million/mt ex-work including VAT.
Size 125 mm also has increased by Rials800,000/mt during last 10 days to
Rials9.5million/mt ex-work. Many mills won’t supply this week.
The only reason behind higher billet
price is sudden rise of debar price, which made billet demand increase
significantly. But year end is near and this situation won’t continue much.
Long Products
Debar price was upward during last week
in Iran. Debar diameter14-25 mm in Esfahan Market improved from
Rials11.267million/mt to Rials12.6 million/mt ex-work including 9% VAT. Debar
Diameter 14-25 mm also increased in Khorasan market from Rials10.9million/mt to
Rials12.9 million/mt ex-work including 9% VAT. Some sellers were offering up to
Rials13.2 million/mt. Payment term which was with 10 days delay by beginning of
the week, changed to cash payment by end of the week, which means around 10%
upward trend for price during the week.
I-beam size 14 and 18 mm were up by
Rials700,000/mt last Sunday, and sizes 22,24 and 28 mm were up by Monday, prices
were up till Wednesday which some sizes were unchanged and some others decline.
Angle and channel were also upward during last week by up to
Rials1,2million/mt.
Market participants believe this upward
trend was not logical within a week. The think the only reason was inflationary
effect and speculations. This upward trend has solved liquidity problem of
mills at year end somehow, though they will continue controlling policy and
make market quiet. By the way it is last working weeks of current Iranian year
and nothing especial would happen.
Flat Products
HRC 2 mm thickness started the week at
Rials12 million/mt on truck in Anzali including 9% VAT and custom duties and
Rials11.7million/mt in Imam Khomeini port. It finished the week at Rials13.1
million/mt on truck in Anzali port. With higher HRC price, pipe and profile
also experienced upward trend by Rials700,000/mt. HRC import level has halved
during last Iranian month from 112,000 mt to 60,000 mt and this trend will
continue this month. Therefore, upward trend in HRC market was not
unexpected.
For HRC 2.5-6 mm thickness, domestic
price of Mobarakeh Steel Co increased by Rials200,000/mt. For thickness 6-15 mm
also market experienced Rials300,000/mt improvement for Mobarakeh Steel Co
products. Oxin and Kavian Co were offering limited tonnage and their plate
price increased by Rials200,000/mt.
CRC market was quiet despite
expectations for improvement. Some sizes were up by Rials300,000/mt.
HDG market was also unchanged but show
potentials for Rials200,000/mt upward trend.
Ex-rate:
In Exchange Room :30,195 Rials /1USD
In free
market : 34,759 Rials /1USD