Billet market was downward during last week in Iran. Domestic billet
size 150 mm changed from Rials13.5-13.6 million/mt to Rials13.3 million/mt ex-work
including 9% VAT by end of the week. As scrap price declined, billet size 120
mm also decreased by Rials200,000/mt to Rials13.2-13.4 million/mt ex-work
including 9% VAT.
Long products market is quiet and billet demand is scarce, therefore,
any upward trend in billet price seems unlikely, but downward amount also won’t
be more than Rials100,000-200,000/mt as raw materials prices are almost stable.
As production cuts will continue for a while in Tangshan province,
China, Iranian billet exporters would have a chance to increase sales level.
Although this chance is short-lived but would help Iran billet market stay
strong for some months.
Long products prices were stable during first half of last week, but by
Tuesday started declining and finished the week at Rials200,000-400,000/mt
Market participants were expecting prices to be upward after Ramadan
Holidays, but it was a temporary expectation which became quiet after 3 days.
Lack of demand satisfied producers that they have to decline price to reach
more sales and avoid liquidity shortage. A small mill reduced its price by
Rials200,000/mt and sold 100,000 mt of its debar in a day in spot market.
Besides higher supply level of Esfahan Steel co debar in Iran Mercantile
Exchange broke price resistance. Downward trend started from Wednesday and
would continue this week at a limited pace. Around 70,000 mt of Esfahan Steel
co debar has been sold in IME and it is being offered in the market at base
price of Rials13.7million/mt excluding VAT. Finished price of these cargoes
would be Rials14.95 million/mt including VAT. Besides, other mills are offering
their debar at Rials100,000-300,000/mt lower than Esfahan Steel co in the
market. Therefore, downward trend will continue.
I-beam downward price trend was also more sensible by end of the week and
would continue in coming days at limited speed.
Generally, market participants believe current sadness in long products
market would continue for a while as demand is limited and production level is
low. Price fluctuations won’t be more than Rials500,000/mt till demand level
HRC 2 mm thickness started week 28 at Rials18.4 million/mt on truck in
Anzali port including 9% VAT and custom duties and Also Rials15.7million/mt at
BIK port. They finished the week at respectively Rials200,000/mt and
Rials100,000 /mt lower. Prices declined as demand was low and Mobarakeh steel
co offered its products at Rials18-18.1 million/mt ex-work including VAT in
domestic market. This product market sentiment is downward as some rumors talk
about high supply level of domestic leader Mobarakeh Steel co and also cheap
purchases of CIS origin HRC in near future in the market.
HRC 2.5-6 mm thickness was faced with lack of demand but market leader’s
higher supply. Though, prices dropped by Rials300,000/mt and there is no hope
for improvement in demand in near future. Thickness 8-15mm was also faced with
high supply level from both domestic mills and importers. It has been 2
consecutive weeks that higher supply level is declining prices. HRP thickness
more than 15 mm was in limited supply. Thickness 35 mm was not available in the
market and its demand level is low. Its import offer has been USD390/mt cfr BIK
for Chinese product, but domestic prices are more interesting for potential
CRC market was almost stable. Market was quiet, but sellers resist
against any discount due to limited supply level. CRC import level has not
improved yet. Import level was 18,000 mt during last Iranian month (21 May-20
Jun) and around 17,700 mt during last 20 days of current month. It is expected
to reach 23,000-25,000 mt for current Iranian month ( 21 jun-21 Jul). Domestic
leader Mobarakeh Steel co is also offering CRC in the market with some sizes
facing supply shortage. Market participants mostly hope CRC price to be stable
at current level. Seasonal sadness is also affecting market activities.
HDG price was almost unchanged due to market inventory shortage. Supply
level is very limited and no import cargo was registered in current month. Its
domestic production is not affordable too. Any way demand is still limited.
Official rate: Rials30,885/1USD
In open market: Rials35,100 /1USD
11 July 2016