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Iran market trend in week 15

Billet

Iran billet market was almost stable last week. Transaction price of 150* 150 mm billet was around IRR 6800-6900/kilo ($690-701/mt) fot Anzali port, including 3% vat. There is a shortage of 125 *125 mm billet in the market. Lowest offer price of billet was $670/mt cfr Anzali. By adding custom duty and vat, its cost price would be at least IRR 7400/k ($751/mt) fot Anzali. As there is a long gap between billet and sections prices especially debar, most of the Iranian firms have decreased production capacity to the minimum level or some of them has been closed. Billet demand is low and if long products market situation become clear, increasing of billet price would be more expectable.

 

Long products

As Isfahan Steel plant didn''t submit debar and IPE in TME (Tehran Metal Exchange) last week, long products prices were just dependent on final demand. Due to increase of raw materials price, debar price fluctuate around IRR 200/ kilo ($21/mt) during last week. IPE market was the same. At the beginning of last week, average retail price of debar wasIRR 7650/k ($777/ mt). It ended the week at IRR 7800/k ($792/mt). I-beam which was priced at IRR 7500/k ($762/mt) in Isfahan, reached IRR 7700/k ($782/mt) at the end of the week. Equal Angle and UNP prices picked up around IRR 200/k ($21 /mt) too. Traders are confused and waited for new announcements at TME. There is a rumor in the market that government would resist severely against any increase in steel products prices. If true, mills that use billet as their raw material will be closed within one month. They would suffer heavily as billet price picks up.

Now CIS Debar is being offered at $730/mt cfr South Iranian port and IPE at $770/mt cfr North Iranian ports.

 

Flat products

During last week, 2.00 mm HRC price picked up around IRR 300/ Kilo ($31/mt) and reached IRR 6800/K ($691/mt) fot Anzali port. After many fluctuations, 3-15 mm HRC prices increased around IRR 200/K ($21/mt). At the beginning of the week HDG was priced at around IRR 9800/K ($995/mt) but at the end of the week was being transacted at IRR 10300/K ($1045/mt). CRC market was almost stable. It''s just 10 days after New Year holidays, but there is a big gap between current prices and the real import prices. When Mobarake Steel starts offering in TME and supply side situation become clear, base price of the market will be set. But market price of CRC and PPGI is not dependent on Mobarake steel prices, and the level of demand determines the price level. Foreign suppliers have not announced new prices yet, but for sure their prices would increase too. It seems that CRC market would be stable next week. But HRC will experience a surge in price as traders with cash flow problems stepped out of the market.

2.00 mm HRC offer price is prevailing around $750/mt cfr North Iranian port, CRC is being offered at $830/mt but in small tonnage. CRGC offer price from China is $1100/mt cfr South Iranian port, but very few transactions have been seen.

Apr 19, 2010 11:14
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