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Iran steel market Trend in Week 43rd , 2018

Iran steel market Trend in Week 43rd   , 2018

Billet

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 430/mt fob.

Long products

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.

Flat products

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.

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Official Ex-rate (CBI):

Rials 42,000/1USD

Oct 29, 2018

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Iran Steel News Bulletin

Oct 29, 2018 11:04
Number of visit : 47

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