Billet
Billet price
experienced explosive surge during last week in Iran. Average price of sizes
125 and 150 mm rose from USD 708 /mt ex-work including VAT on Saturday to USD 740
/mt on Sunday. By Monday, Khouzestan Steel co offered 40,000 tones at IME (
Iran Mercantile Exchange) but there was 468,000 tones demand for it. Market was
shocked by this move. It was clear that it is not real demand. The demand was
equal to 25% of annual production of Khouzestan Steel co. By government
interference, the deal canceled and billet average price was USD 800 /mt by
Tuesday. By Wednesday, again Khouzestan Steel co offered 40,000 tones, but
demand was 410,000 tones. Kish South Kaveh Steel co also offered 10,000 tones
with demand of 79,000 tones available for it at IME. Therefore, just 10% of
demand was satisfied at IME. This incident had unbelievable consequences
for Iran steel market. Billet price surge suddenly and rapidly as by end of the
week billet price of private mills reached USD 817 /mt ex-work including VAT. Steel
scrap price also rose to more than USD 499 /mt when its supply level is also
limited significantly. DRI price reached
USD 363 /mt ex-work including VAT.
long
products
Long products prices
surged upward. Average price of debar diameter 8-32 mm rose from USD 813 /mt to
USD 938.5 /mt ex-work including VAT by Wednesday after
shocking happenings in billet market. I-beam price for sizes 14-18 also surged
from USD 791 /mt to USD 931 /mt ex-work including VAT. Actually within a week
debar price rose by 14% and I-beam price by 15%.
By last Monday,
Esfahan Steel co supplied 13,000 tones of I-beam at IME with highest sale price
USD 739 /mt ex-work excluding 9%VAT equal to USD 806 /mt including VAT. From
Monday onward transportation of cargoes by truck experienced some disruptions. By Wednesday, Arvand Steel co offered its first supply at IME
at base price of USD 739 /mt ex-work excluding VAT. Supply level was 5000 tones
and demand 49,000 tones. Disturbed sentiment of the market was made by some mills
beside the situation of billet market made long products prices upward.
Flat
products
HRC 2 mm thickness
was also upward like other steel products last week in Iran from USD 838 /mt to
USD 976 /mt on truck in Anzali including 9% VAT and custom duties. Lower import
level and increasing ex-rate level were two reasons behind higher prices. But
main reason was 31% rise of Mobarakeh Steel co offered price at IME which
reached USD 737 /mt ex-work excluding VAT. Two weeks ago it was sold at USD 637.5
/mt. Therefore, last week deal was canceled but affected retail market
sentiment.
Plate price also
rose as Oxin co product increased from USD 751 /mt to USD 813 /mt ex-work
including VAT.
CRC
market was faced with supply stoppage. CIS products are almost unavailable in
Iran and domestic market is just depended on Mobarakeh Steel co. The mill can’t
satisfy all of the market demand.
HDG
market was in the same situation as price rose from USD 1097 /mt to USD 1266
/mt ex-work including VAT. HDG supply level has also become limited due to its
dependency on CRC.
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Official
Ex-rate (CBI):
Rials 44,050/1USD
July
30 , 2018
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Iran
Steel News Bulletin