Billet market was downward slightly
during last week in Iran. Khouzestan Steel co billet was down from Rials13-13.1
million/mt to Rials12.8 million/mt ex-work including 9%VAT. Some market
participant were expecting Khouzetsan Steel co decline its price at IME
,though, stopped dealing but the market leader made prices unchanged at IME.
The mill sold 50,000 mt of its slab at IME at base price of Rials12.25million/mt
excluding VAT and 80,000 mt of its billet at Rials12.5million/mt base price
As the market leader has not
changed its billet price at IME, we can expect stable market trend. Khouzetsna
Steel co billet price in retail market is cheaper than IME base price. The
reason is that some traders purchased it at IME with delayed payment but sell
in spot market with cash payment.
Other domestic producers were
offering billet size 150 mm unchanged at Rials12.9-13.1 million/mt ex-work
including VAT. Size 120 mm was also Rials12-12.5 million/mt.
It’s worth noting than scrap price
improved during last week in Iran which may influence billet market in near
Debar price was almost stable during week
30 in Iran as it seems that has reached the bottom. Average price of debar
diameter 14-25 mm changed from Rials15.10million/mt to Rials15.05 million/mt
ex-work Esfahan including VAT. I-beam size 14-18 mm improved a little from
Rials15.06 million/mt to Rials15.16 million/mt ex-work Esfahan including VAT.
Esfahan Steel Co sold 80,000 mt of its
debar and I-beam at base price of Rials13million/mt excluding VAT which
surprised market participants as minimum sale price at IME had been Rials13.7
Finished price of the mentioned sale
would be Rials14.18 million/mt including VAT. Therefore market is expecting
downward trend in coming days.
This purchase price is not logical and
questionable because billet price is Rials12.5 million/mt, which means only
Rials500,000 /mt gap between billet and debar & I-beam. It’s impossible to
convert billet to long products by just Rials500,000/mt in Iran.
Other long products were downward during
last week with angle dropped by Rials800,000/mt and channel by Rials400,000/mt.
HRC 2 mm thickness was Rials18 million/mt
on truck in Northern port of Anzali including 9% VAT and custom duties and
Korean origin was also Rials18 million/mt on truck in Southern port of BIK by
beginning last week. Market was quiet and price dropped by Rials100,000/mt at
Anzali port by end of the week. The only flat product which its import is
somehow profitable at the moment is HRC 2 mm and may experience some declines
in coming months.
HRC thickness 2.5-6 mm was facing with
low demand and prices were down by Rials200,000/mt during the week. Thickness
8-15 mm from Oxin, Kavian and Mobarakeh Steel co were being offered unchanged.
HRP thickness higher than 15 mm had a quiet market. Thickness 20 and 25 mm is
almost unavailable from Oxin Steel co.
CRC market was depressed like previous 3
months. This sadness has led to lack of import or domestic purchases and some
sizes like 0.90 mm is not available.
HDG market was also quiet and lack of
demand was obvious.
Official rate: Rials30,951/1USD
In open market: Rials35,330/1USD
01 Aug 2016