Billet
Billet size 125 and 150
mm started week 47th at average of USD 880 /mt ex-work including 9%
VAT on last Saturday. By last Monday, upward trend started till Wednesday which
price reached USD 886 /mt ex-work including 9% VAT. The main reason behind this
upward trend was increased price of Khouzestan Steel co at IME which was USD 830
/mt ex-work excluding 9% VAT. Market was expecting this as supply of the mill
and its pricing made market downward trend stopped. If billet price stays at
current level, debar price won’t decline. Market insiders believe that billet
export level will make clear market trend more. If export level declines,
billet market should choose:
1- Higher supply and
decline of prices
or
2- Lower production and keeping
prices unchanged.
Big mills prefer keeping
prices stable, therefore would try increase export level, otherwise would have
to decline production level.
Long products
Long products were
downward as expected. Average price of sizes 8-32 mm dropped from USD 1029/mt
to USD 1017/mt ex-work including 9% VAT. Four mills offered their debar at
average base price of USD 885/mt ex-work excluding 9% VAT at IME which after
VAT would be USD 964.5/mt.
Average price of I-beam
sizes 14-18 mm was also downward as Esfahan Steel co product price dropped from
USD 1079/mt to USD 1072/mt. Angle and channel were also downward by around USD 17
/mt. Long products prices are near their bottom but need a stimulator out of
market for any change.
Flat products
HRC
2 mm thickness in domestic market started the week at USD 1369 /mt ex-work including 9% VAT for Saba Steel co product
and ended the week at USD 1398 /mt ex-work including 9% VAT. Ahwaz Rolling and
Pipe co HRC 2 mm thickness was offered at USD 1309 /mt with no serious demand
for it. For thicknesses 2.5-15 mm, Mobarakeh Steel co product declined slowly
from USD 1051 /mt to USD 1049/mt ex-work Esfahan including 9% VAT. Oxin co HRP
thickness 10-40 mm improved by USD 5 /mt to USD 986/mt ex-work including 9% VAT
due to limited inventory level of Oxin co products in the market. Rumors about
possible rise of Slab also helped HRP price. Kavian co HRP was available in the
market with thickness 15-30 mm stable around USD 960-961 /mt.
CRC market was downward
during last week in Iran. Domestic product thickness 0.40-2.5 mm from Mobarakeh
Steel co decreased from USD 1781/mt to USD 1759/mt ex-work including 9% VAT mainly
due to limited demand level.
HDG price dropped due to
lower CRC price and declining ex-rate. Average price for sizes 0.40-1.5 mm
dropped from USD 2198/mt to USD 2152/mt. As demand is limited, downward trend
may continue.
-----------------------------
Official
Ex-rate (CBI):
Rials 42,000/1USD
Nov 26,
2018
----------------------------------------------
Iran
Steel News Bulletin