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Iran Steel market Trend in Week 43rd 2016

Billet

Iran billet market experienced a quiet week. Domestic billet size 125 mm was USD351-356/mt ex-work including 9% VAT. Size 150 mm was also USD356-359/mt.

Imported billet size 150 mm was also USD359/mt on truck in Anzali port including 9% VAT and custom duty.

Khouzestan Steel co offered its 150 mm billet on Tuesday at IME at base price of USD351/mt excluding VAT, with no taker. Long products production level has dropped to low levels and made billet demand limited. Besides, there are cargoes in retail market available from last purchases from Khouzestan Steel co at cost price of USD356/mt ex-work including VAT. This won’t let the mill change its new offer prices.

Global billet price has been upward currently and this would be a chance for Iranian mills to increase export level.

 

Long Products

Debar price was almost stable during week 43rd in Iran. Average price of debar diameter 14-25 mm ex-work Esfahan was USD441/mt including VAT. I-beam price increased due to Esfahan Steel Co pricing policy especially for size 14 mm from USD456/mt to USD481/mt ex-work including VAT.  Debar producers tried rising prices and selling in cash but market passed a quiet week. The market depression was a record during last 8 months.

Angle and channel price increased by USD8/mt by end of the week but there was no buyer in the market.

It has been a few weeks that producers are trying to change prices and payment terms but market is quiet and lack of demand is serious. Increasing export level may help domestic market.

 

Flat Products

HRC 2 mm thickness was upward during last week from USD539/mt to USD558/mt on truck in Anzali including 9% VAT and custom duty. There were two reasons behind this upward trend:

1- Higher ex-rate

2- Limited CIS origin supply level and rising fob prices

This material has increased by USD40/mt during last month. Besides, CIS mills are negotiating for January production. Some traders which had ordered at low prices before, have 2,000 mt parcels at USD440/mt cfr Anzali port available. With current ex-rate, its cost price would be USD539-553/mt on truck in Anzali including VAT and custom duties.

HRC 2.5-6 mm was up by USD22/mt due to limited supply. Sizes 8-15 mm were also up by USD11/mt due to same reason. Higher prices in global markets helped this upward trend too as Iranian traders became confident that import material can’t compete with domestic market.

HRP thickness 15 mm or higher is in shortage especially from Oxin co. Therefore, prices were upward. Some sizes experienced up to USD28/mt improvement. Market became quiet by end of the week.

CRC market was strong with prices up by USD28/mt due to limited CIS supply level and ex-rate fluctuations. Some market participants expect this trend continue for a month. Some others believe cheap purchased cargoes from previous months are on the way to Iran. Market can’t accept higher prices in this condition. Some CIS products are offered at higher prices compared to domestic leader Mobarakeh Steel Co, when domestic one is in better quality. Besides, when prices rise demand will decline more.

HDG market was upward for some sizes up to USD28/mt. Market inventory level is downward as production is declining due to higher cost for CRC and zinc.

 

Ex-rate:
In open market:  Rials 36.190 /1USD

29 Oct 2016

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Mona Taban

Iran Steel Service Center

IFNAA News Agency

http://www.ifnaa.ir/en/home
Oct 30, 2016 08:26
Number of visit : 1,017

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