Billet price was downward during last week in Iran. Average
price dropped from USD 898/mt to USD 871/mt ex-work including 9% VAT. Most
offers at IME ( Iran Mercantile Exchange) were not accepted by buyers because
of three reasons:
1- Billet buyers at the moment in Iran are mostly mills and
traders are not at IME any more.
2- Long products market is depressed which has made billet
buyers quiet too.
3- Buyers at IME are worried and confused about future.
Another main reason could be limited billet export at the
Debar price was almost stable, mainly because price has
reached the bottom level. Average price of dia 8-32 mm started the week at USD 1067/mt
ex-work including 9% VAT, by Monday became USD 1047/mt and by Wednesday it reached
USD 1055/mt. DRI price at IME has dropped to USD 375/mt ex-work excluding 9%
VAT and billet market is downward, therefore, debar market trend is negative.
Debar production is also at the bottom and mills try to just satisfy demand.
Neighbor countries are
interested in Iranian products but export level has dropped, which has made
market sentiment more negative.
I-beam price fluctuated like debar. At IME it was transacted
at the initial offered price without any competition at USD 828 /mt ex-work
excluding 9% VAT.
Imported HRC 2 mm thickness started the week at USD 1405/mt
on truck in Anzali including 9% VAT and custom duties. Domestic prices from
Ahwaz Rolling and Pipe co was around USD 1262-1286/mt ex-work including 9% VAT.
Thickness 2.5-15 mm rose during the week from USD 998/mt to USD 1021/mt ex-work
including 9% VAT. Higher base price at IME has made price improve in retail
Oxin co HRP was stable at around USD 983 /mt ex-work
including 9% VAT for thickness 10-40 mm. some sizes like 30 mm are also in supply
shortage. Generally based on current slab price, Oxin co prices are not
affordable. Besides demand is limited itself.
CRC market had a quiet week. Supply level is week, but demand
is scarce too. Mobarakeh Steel co increased its CRC base price at IME from USD 982/mt
to USD 1234.5/mt ex-work excluding 9% VAT. Based on its delivery time and the
premium, it is not much different from retail market price.
HDG base price at IME rose from USD 1292/mt to USD 1864/mt
ex-work excluding 9% VAT during last week. This change made retail market price
improve by USD 24/mt.
Official Ex-rate (CBI):
Oct 22, 2018
Iran Steel News Bulletin