Iran Steel market Trend in Week 29th 2016


Billet price was downward slightly during last week in Iran. Size 150 mm declined from Rials13.2-13.3million/mt to Rials12.9-13 million/mt ex-work including 9% VAT. By beginning of last week, Khouzestan Steel Co sold 7600 tons of its billet at base price of Rials12.5 million/mt excluding VAT. Its finished price after VAT would be Rials13.63milion/mt. Meanwhile same material was offered by some traders at Rials12.9-13million/mt including 9%VAT.

It has been a while that the gap of billet price at IME and physical market has widened due to lack of liquidity of sellers. Khouzestan Steel Co can’t change ( upward or downward) billet price at IME easily as its billet price at IME works as an index for pricing DRI, Pellet or iron ore concentrate. But billet price in physical market is based on supply-demand level.

During last 4 months, Iranian billet export level has been around 148,495 tones based on Custom data and it is likely to improve as government policy is raising export level. By improving export level, private mills would have more chance to increase capacity utilization.


Long Products

Long products continued downward trend during last week. Demand was low and market activity almost silenced, therefore long products prices were downward and made billet also decline. At the moment there is no problem in long products supply and all sizes of debar were available by different mills. Khorasan Steel co just resists against downward trend and offered prices unchanged, but it’s likely that the mill be forced to decrease prices in coming days due to current market sentiment.

Debar diameter 14-25 mm was Rials15.4million/mt ex-works Esfahan including 9% VAT by Saturday and finished the week at Rials15.138 million/mt by Thursday. I-beam average price for sizes 14,16,18 mm also changed from Rials15.15million/mt to Rials15 million/mt  ex-work including VAT. Angle and channel also experienced Rials200,000/mt decline during the week.

Around 21,000 mt of long products has been exported from beginning of current Iranian Year ( 20th  March) but is expected to decline due to Iraq new market condition.

During last 4 months 1,842,957 mt of semi and finished steel products have been exported but just 675,081 mt has been imported.


Flat Products

  HRC 2mm thickness was downward during last week in Iran. Its price at Anzali port dropped by Rials200,000/mt to reach Rials 18 million/mt on truck in Anzali including 9% VAT and custom duties. Chinese origin was Rials17.7 million/mt on truck at Southern port by beginning of the week. It was not available at the end of the week but Korean origin was Rials18million/mt on truck including VAT and custom duties. HRC import level has been downward during last 3 months in Iran. From 71,200 mt ( 20 Apr-20 May) to 47,200 ( 21 May-20 Jun) and 34,600 during first 20 days of last Iranian month (21 Jun-10 Jul). Kazakh origin HRC 2 mm thickness was up by USD10/mt during last week to USD380/mt cfr Iranian ports. Mobarakeh Steel co product was Rials18million/mt ex-work Esfahan including VAT but transactions level was limited.

HRC 2.5 mm thickness was stable due to limited supply level but thickness 3-6 mm dropped by Rials200,000/mt. Thickness 8-15 mm was also down by Rials300,000/mt as market is very quiet. HRP thickness more than 15 mm was stable as market leader Oxin Steel Co decreased supply level seriously.

CRC market was quiet. Demand has been limited, therefore prices were unchanged despite limited supply level. Besides, Kazakh suppliers were looking for USD10-20/mt increase in offers. But domestic supply level is rising and demand is low. Many CRC traders have also left this market due to unfavorable situation. Though, CRC market has no clear outlook.

HDG market was faced with limited supply level like previous weeks, but scarce demand has made prices downward. Besides as CRC price is declining HDG would be downward too.



Official rate:  Rials30,940/1USD
In open market:  Rials35,100  /1USD

23 July 2016

Jul 24, 2016 09:12
Number of visit : 620


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