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Iran Steel market Trend in Week 22nd , 2016

Billet

Billet price was upward during last week in Iran market. Billet size 125 mm in domestic market was around Rials12.9-13.4 million/mt ex-work including 9% VAT. Size 150 started the week at Rials13.1-13.2 million/mt but reached Rials13.7million/mt ex-work including VAT due to limited supply level. It’s around one month that market leader Khouzestan steel co is not offering billet in domestic market. Some other mills like Arfaa co are not in the market too. Therefore supply level has declined and long products mills have to produce on daily basis due to low billet inventory. Import billet market is also quiet. CIS origin billet is USD340/mt cfr Northern ports and Chinese product is around USD300/mt cfr Southern ports. Importing billet at these prices is not affordable.

Downward trend in global billet markets has not affected export offers of Iranian mills yet. If downward trend continues, Iranian mills will prefer offering to domestic market despite exporting.

 

Long Products

Long products were downward by beginning of week 22 in Iran but became upward by Tuesday. Average price of debar diameter 14-25 mm improved from Rials15.14million/mt ex-work including 9% VAT to Rials15.6million/mt by end of the week. Khorasan steel co debar diameter 14-28 mm also improved by Rials300,000/mt to Rials15.3 million/mt. Channel price increased by Rials200,000/mt to Rials17.1 million/mt ex-work including VAT for sizes 6-16mm. I-beam size 14-18 mm started the week at Rials15.717million/mt ex-work including VAT and was downward till Wednesday and finished the week almost stable.

 Long weekend made market upward due to speculative policies of traders, but market participants expect prices back to last week level and became stable in coming days when activities increase.

 

Flat Products

HRC 2 mm thickness experienced downward trend during last week in Iran. Imported material was down by Rials400,000/mt in Anzali port to Rials17.5 million/mt on truck including 9% VAT and custom duties. It was also down by Rials300,000.mt in Imam Khomeini port to Rials17.4 million/mt on truck including 9% VAT. HRC 2 mm thickness import level has been downward during current quarter in Iran. It declined from 104,000 mt in first month of current Iranian year to 74,000 mt during last month. As global prices are downward, import level will continue declining. Import offers are at USD380/mt cfr Northern ports and USD310/mt cfr Southern ports. Therefore, Chinese material would be more interesting. But current purchases of Chinese HRC will arrive in next 2 months and would affect market later.

HRC 2.5- 5 mm experienced a stable week. For thickness 6-15 mm prices were down by Rials100,000/mt due to higher import cargoes in the market and low demand.  HRP market experienced some improvements due to limited supply level by market leader Oxin steel Co . Sizes 25-40 mm increased by Rials100,000/mt and is expected to continue this trend in coming days.

CRC market was also downward. Its import level increased to 56,000 during last Iranian month from 35,000 mt a month before. But demand level is limited. Besides, imported CRC is expensive compared to domestic offers.

HDG market was also downward and buyers’ market.

Ex-rate:

Official rate:  Rials30,478/1USD
In open market:  Rials 34,730  /1USD

05 June 2016

Jun 6, 2016 08:11
Number of visit : 1,477

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