Average billet price was USD 397/mt last
Saturday, reaching USD 403/mt by Wednesday. Despite the market closure for mid-week
Holiday, this uptrend was predictable due to market pressures at end of the
year in Iran. The main reasons for the increase in billet price were the rise
in the price of DRI and higher ex-rate. DRI base price has been currently
around USD 233/mt.
Chinese market started its activity and has been slowly working since
last Monday, and at the first step commodity prices improved. Chinese market closure
has reduced mills inventories, therefore in the coming weeks they may increase purchases
to refill inventories and this will rise prices. A very important issue in Iran
export market is the problem of FATF acceptance, which will make it difficult
to transfer foreign currencies to Iran if no solution is found.
price of rebar, which was USD 439/mt last Saturday, reached USD 452 /mt ex-work
including VAT on Wednesday as a result of the increase in billet price and its
restricted supply. However, rebar buyers are skeptical about the price increase
and year end approaching increases these doubts.
sizes 14-18 average price, which was USD 494 /mt ex-work Esfahan on Saturday, reached
USD 508/mt by Wednesday. Esfahan Steel co I-beam basket was sold on IME at USD 16/mt
increase on Saturday with base price at around USD 397/mt and delivery of mid-May.
This would mean fixing price of I-beam at around at least USD 480/mt for next Iranian
year. The current trend of billet and rebar price will cause market downturns
as capital demand for liquidity coverage will increase. On the other hand, this
has strongly pressured construction companies and end users’ demand level has
declined. If the export market slows down too, it is unclear where the long
products production will go.
2 mm thickness HRC was USD
589 /mt ex-work Esfahan and USD 554/mt ex-work Ahwaz by last Saturday which
reached USD 628 /mt and USD 606/mt ex-work including VAT, respectively by end
of the week. The average price of 3 to 15 mm thickness HRC of Mobarkeh Steel co
products, which was USD 658/mt on Saturday, rose to USD 705/mt on Wednesday.
Most traders and retailers are reluctant to sell due to rising prices because
the sold cargoes cannot be replaced due to limited supply level.
Oxin co HRP thickness 10 to 40 mm was USD 660/mt by last Saturday
and reached USD 726/mt on Wednesday. The mill supply level is still limited,
while slab price has increased which has also affected Oxin co production costs.
In the short term, these conditions are unlikely to change. Kavin co HRP was
not offered much and its price level was not clear.
Average price of CRC thickness 0.40 to 2 mm started the week at USD
866/mt, but was USD 938 /mt on Wednesday. The price trend is unlikely to
HDG thickness 0.45 to 1.5mm was upward due to higher HRC price from
USD 828/mt to USD 850 /mt on Sunday and since then there was no serious
supplier due to mid-week Holiday in the market.
weekly average ex-rate for Steel Products (SANA): Rials 135.358 / 1USD
17 Feb 2020