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.
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
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.
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
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
23 July 2016