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Iran steel market Trend in Week 08th , 2018

Billet

Iran billet market was almost quiet during last week. Average price of billet size 150 mm was USD 495 /mt ex-work including 9% VAT and size 125 mm was USD 493 /mt ex-work including 9% VAT, by last Saturday. By Wednesday, as slab was sold at IME at base price of USD 488/mt ex-work excluding 9% VAT which is extremely high and made sellers stay back. Finally, worries about future debar price made billet size 150 mm drop to USD 490 /mt and size 125 mm to USD 486 /mt ex-work including 9% VAT.

Long products market is depressed and nobody is interested to buy, but market insiders hope this trend won’t continue much. Iran domestic billet price has still at least USD 45/mt to reach global markets prices and should fill this gap. Therefore, it seems that Iran billet market have no choice but to rise. Actually in coming month it will happen as export level is rising too.

DRI supply shortage forced small billet mills stop production, which made billet supply level significantly decline. This limitation seems to continue for a while. Big mills are using all the DRI available and put small mills in trouble. Such a problem has been affected on pellet market too. It is year-end in Iran which traditionally iron ore pellet supply level decrease, with transportation problems which made this situation worse.

 

Long products

Debar diameter 8-32 mm experienced downward trend till last Monday as dropped from USD 551/mt on Saturday to USD 543 /mt ex-work including 9% VAT. By Tuesday market was closed and on Wednesday prices rose to USD 545/mt ex-work including 9% VAT. I-beam price was despite debar, upward from USD 638/mt to USD 643/mt ex-work including 9% VAT for sizes 14,16,18.

Esfahan Steel co is Iran’s long products market leader. The mill is careful about its pricing policy as knows if rise prices, its competitors will take its market share. But when billet price rise, small producers of I-beam would have to get back, then Esfahan Steel co would have enough space to raise its prices as is expected to reach USD 672 /mt ex-work including 9% VAT.

For debar, the reason behind last week downward trend is high inventory level of warehouses by cheap cargoes of lower than USD 560 /mt. Traders are worried about market future trend and prefer selling their inventories which has made market downward. But it is logical that when billet price rise, debar price would also improve as its raw material price increase. Traders who believe in this trend would be winners as debar price have enough space to reach as much as USD 672 /mt.

 


 

 

Flat Products

Imported HRC 2 mm thickness started week 08 in Iran at USD 663 /mt on truck in Anzali including 9% VAT and custom duties. Prices became downward and reached USD 647 /mt by end of the week.

As slab was sold at IME at base price of USD 488 /mt ex-work excluding VAT by last Wednesday, it means domestic HRC would reach base price of USD 627 /mt excluding VAT which may lead to import demand improvement. Mobarakeh Steel co was offering its HRC 3-15 mm thickness at USD 616 /mt ex-work including VAT by beginning of the week, after some downward finally reached USD 617 /mt by Wednesday.

Market insiders expect Mobarakeh Steel co prices improve in coming future. One obstacle in front of the mill is downward export level of its HRC as has more than halved during last 9 months of current Iranian year compared to a year ago. But the mill has enough experience in export and will compensate this decline. Besides, the mill is increasing its slab export level too.

Oxin co HRP product price sizes 8-40 mm dropped from USD 631 /mt to USD 625.5 ex-work including VAT. Kavian co HRP thickness 8-30 mm was also downward from USD 611 /mt to USD 604 /mt. Market sadness, mid- week Holiday and being last week of the month made HRP market downward.

By announcing new record slab base price at IME, by Hormozgan Steel co, finished price of HRC would be USD 621/mt ex-work including VAT. Market should accept that base price of HRC will reach USD 672 /mt in coming months.

CRC market experienced upwards. Most suppliers are involved in year- end affairs which has made supply level decline. Import cargoes are also expensive and also limited, therefore prices were upward during last week but by Wednesday became quiet and calm.

HDG market was also quiet and didn’t experience any serious fluctuation.

 

 

Ex-rate:
In free market:  Rials  44,660  /1USD

25 Feb ,2018

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Iran Steel News Bulletin

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

 

 

Feb 26, 2018 14:11
Number of visit : 728

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