Average price of billet sizes 125 & 150 mm started week
43 at USD 873 /mt and finished it at USD 870/mt ex-work including 9% VAT. Iran
billet market was quiet during last week as:
1- Sadness in long products market appeared which affected
billet market too. Billet price rose from USD 871/mt to USD 882/mt ex-work including
9% VAT by last Monday as debar price rose, but by Tuesday again price came back.
2- Some strengthening rumors about declining base price of
billet at IME in coming future to USD 762/mt ex-work excluding 9% VAT,
therefore re-rollers are moving cautiously and prefer keep inventories at the
possible minimum level.
3- Ambiguities in export market. Billet export offer has
declined from USD470/mt fob to USD 440/mt and some sources talk about USD
Long products market in Iran passed a calm week. Just by last
Monday market experienced some heats which was just due to the rise in
ex-rate. Debar average price started the week at USD 1043 /mt, by Monday
reached the high weekly level of USD 1045/mt and by end of the week was down
again to USD 1042 /mt ex-work including 9% VAT.
I-beam market was quiet with a light downward trend. Average
price of sizes 14-18 dropped from USD 1070 /mt to USD 1065/mt ex-work including
9% VAT. As the market would be almost close this week due to Mourning Holidays
of Arbaeen in between, therefore market won’t experience any significant change
this week. But if billet price decline in coming week as expected, long
products market would face increasing competitive supplies which will affect
prices. Besides, cold season has arrived and many infrastructure projects are
almost stopped, therefore real demand is scarce.
Imported HRC 2 mm thickness started week 43 at USD 1405 /mt
on truck in Anzali including 9% VAT and custom duties. Price of domestic
products for thickness 2.5-4 mm dropped by USD 24 /mt due to competitions
between sellers as they are worried about declining slab price. Thicknesses 3
and 4 mm were offered at USD 1119 /mt ex-work including 9% VAT. Thickness
2.5-15 mm was also down from USD 1021/mt to USD 1009/mt ex-work including 9%
VAT by end of the week. Supply level was low but buyers expect downward trend
in the market, therefore some discounts were heard on transactions.
Oxin co HRP products were also downward from USD 985/mt to
USD 982/mt ex-work including 9% VAT. Besides Oxin co HRP supply level is low which
is more serious for some sizes.
CRC market was stable as supply – demand is balanced. Besides,
sellers are not eager to decline prices as Mobarakeh Steel co base price at IME
has improved. CRC price has rose during current month significantly and now
market can’t accept more rises easily. Generally, CRC market is waiting for
more declines at IME as slab price is expected to decline.
Traders mostly prefer wait and see policy at the moment till
market price trend become more clear.
HDG market was also unchanged as supply and demand level is
balanced and higher zinc price won’t let HDG price decline easily.
Official Ex-rate (CBI):
Oct 29, 2018
Iran Steel News Bulletin