News

Iran Steel market Trend in Week 30th 2016

Billet

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 excluding VAT.

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 future.

 

Long Products

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 million/mt currently.

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.

 

Flat Products

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.

 

Ex-rate:

Official rate:  Rials30,951/1USD
In open market:  Rials35,330/1USD

01 Aug 2016

Aug 1, 2016 09:07
Number of visit : 503

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