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Iran steel market Trend in Week 44th , 2018

Iran steel market Trend in Week 44th    , 2018

 

Billet

Billet price was downward during last week in Iran. Average price of billet size 125 mm and 150 mm started the week at USD 859.5 /mt ex-work including 9% VAT and finished the week at USD 911/mt ex-work including 9% VAT. Main reason behind upward trend was increase of base price at IME ( Iran Mercantile Exchange). Arfaa Steel co offered its billet last Saturday at IME at base price of USD 676/mt. As demand level increased to 49500 tones, final price reached USD 788/mt ex-work excluding 9% VAT.

There were two main reasons behind higher demand at IME:

1- Base price was too low and made buyers more interested.

2- Arfaa Steel co do not have problems of Khouzestan Steel co and customers trust the mill easier, this has made demand level improved.

Last week, ex-rate improved and made long products prices higher, this affected billet price positively. But this week if ex-rate remain stable, would make market quiet as we will have a long weekend due to religious Holidays and everything would depend on next supply of Khouzestan Steel co at IME.

Long products

Average price of debar diameter 8-32 mm started week 44 at USD 1033/mt ex-work including 9% VAT last Saturday. By Sunday average price dropped to USD 1031/mt. With ex-rate improvement, price again started rising till USD 1061/mt ex-work including 9% VAT. Main reason behind higher debar price besides higher ex-rate and rising billet price was inflation expectations. Market expectation for debar minimum and maximum price is between USD 1000 – 1095 /mt ex-work including 9% VAT. If debar price drop to lower than USD 1000/mt, billet price should decrease to USD 881/mt ex-work including 9% VAT and DRI price lower than base price of USD 405/mt ex-work excluding 9% VAT and pellet lower than USD 190/mt ex-work excluding 9% VAT.

But pellet export level is helping its price improving, therefore, billet price of lower than USD 881/mt and debar of lower than USD 1000/mt seems unlikely.

Average price of I-beam size 14 & 18 mm started the week at USD 1106/mt and ended in USD 1111/mt ex-work Esfahan including 9% VAT. I-beam market is being controlled by Esfahan Steel co and do not have significant fluctuations.

Flat products

Imported HRC 2 mm thickness was around USD  1405/mt on truck in Anzali including 9% VAT and custom duties by last Saturday. Import market inventory is too much limited and buyers are more interested in domestic products. Mobarakeh Steel co offered its HRC thickness under 6 mm at base price of USD 937/mt and succeeded to end the deal at USD 1063/mt base price. This price is not much different from retail market after 9% VAT

Oxin co HRP thickness 10-40 mm started the week downward as some sizes reached around USD 952/mt ex-work including 9% VAT or lower. The downward trend didn’t stayed long as by last Monday it was sold at IME by private sector at base price of USD 940/mt ex-work excluding 9% VAT but the deal was canceled and just 500 tons was sold at USD 780/mt. market was in Holiday by Tuesday which helped it became calm. But the point is that Oxin co HRP based on its production cost should be at least USD 1024/mt to be profitable for the sellers. Kavian co HRP was also available in the retail market which was cheaper than Oxin co products and customers were more interested in it.  

CRC market was almost unchanged as price started the week at USD 1681.5/mt and ended it at USD 1675.5/mt. Import products are almost unavailable in the market and Mobarakeh Steel co is the only market leader.

HDG market had a stable trend and by Wednesday last week just improved by USD 12/mt to reach USD 2021/mt ex-work including 9% VAT. Mobarakeh Steel co HDG products is limited in retail market but Seven Diamond co products for almost all sizes is available.

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Official Ex-rate (CBI):

Rials 42,000/1USD

Nov 05, 2018

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Iran Steel News Bulletin

Nov 5, 2018 13:07
Number of visit : 165

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