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Iran steel market Trend in Week 05th , 2017

Billet

Billet market experienced heavy decline during last week in Iran. Domestic billet size 125 mm dropped by USD 16/mt to USD 321/mt ex-work including 9% VAT. Size 150 mm also decreased by the same to reach USD 327/mt.

Two reasons behind downward trend of billet market are:

1- Higher supply level

Some mills had been forced to clear their debts with giving their creditors billet drafts. These drafts holders which have no experience in steel trading are offering the billet at any price even with heavy losses just to get cash out of it.

Last Monday Khouzestan Steel co sold 24,800 tones of its billet at base price of USD 372/mt excluding VAT at IME. But seems it was a matching contract.

2- Steel market serious depression

Long products demand level is minimum. Steel mills are ready for more discounts to improve their cash shortage.

 

Long Products

Long products market passed a harsh week. Debar diameter 14-25 mm declined by USD 8 /mt to USD 405 /mt ex-work Ahwaz including VAT. Sellers were looking for buyers. The same material at Esfahan market dropped by USD 15/mt to USD 418 /mt ex-work including VAT with no buyer available.

Long products market participants are pessimistic about next quarter as some traders were offering high tonnage parcels with 2-3 months delay in payment possible. It seems long products market won’t improve till at least next Iranian year Presidential election ( to be held on 19 May 2017).

 

Flat Products

HRC 2 mm thickness decreased by USD 10 /mt to USD 562/mt on truck in Anzali including VAT and custom duty due to lack of demand. CIS origin material is still USD500/mt cfr Anzali port. This means minimum cost price for importers would be USD 627/mt including custom duty and VAT. Import level has been declining heavily currently due to this trend. During last 3 month import level declined from 178,000 tones to 120,000 tones. Buyers prefer buying from domestic mills as Mobarakeh Steel co domestic supply has increased and Saba Steel Co price is near import prices. Besides, pipe and profile demand has declined significantly.

For HRC thickness 2.5-8 mm prices declined by up to USD 8 /mt as Mobarakeh Steel co products were available in the market. For sizes 6-15 mm, low demand and high supply level made market quiet.  Prices dropped averagely by USD 8 /mt . For thickness higher than 15 mm, Kavian and Oxin Co products were being offered in the market and made prices downward.

In CRC market import offer level declined but prices also dropped by USD 3- 5/mt. Some sizes were in limited availability. Mobarakeh Steel co products were down by USD 8/mt. Winter is traditionally good time for CRC consumption but at the moment demand is significantly low.

HDG market was still in depressed sentiment and limited supply with prices dropped by USD 5 /mt.

Ex-rate:
In free market:  Rials 38.260 /1USD

04 Feb  2017

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Iran Steel Service Center

IFNAA News Agency                                                

http://www.ifnaa.ir/en/home

 

Feb 5, 2017 10:44
Number of visit : 873

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