Lower currency rate and ambiguous outlook of the market, made billet price
in Iran domestic market downward during last week from USD 438/mt to USD 416 /mt
ex-work including 9% VAT by end of the week. Meanwhile, DRI supply level was
limited and its base price was not heard lower than USD 220 /mt. There was no
demand for offered billets at IME last week, and no serious price change is
expected in coming days since we have midweek Holiday this week.
Rebar average price,
which was USD 486/mt on last Saturday, reached USD 476 /mt ex-work including
VAT by end of the week, while some mills were offering sizes 14 or higher at
USD 451/mt including VAT. The reasons for this decrease were lower ex- rate, expectation
of lower prices, government's punitive policy against excess inventories, and
waiting policy of traders. Average price of I-beam sizes 14 -18, which was USD
534 /mt ex-work Esfahan by beginning of the week, also dropped to USD 530/mt ex-work
including VAT by Wednesday.
Mobarakeh Steel co 2
mm thickness HRC was not offered in the market last week, but this did not
increase price of other mills’ products because pipe and profile market was in
recession. Mobarakeh Steel co HRC had a downward trend from USD 609 /mt to USD 605/mt.
Government’s severe controlling policy has led to a sharp drop in the volume of
transactions of this product within last two weeks.
Oxin Co HRP
thickness 10 - 40 mm, which had an average price of USD 622 /mt, reached USD 606/mt
including VAT by end of the week. Kavian co HRP also was faced with a decrease
in price and fell from USD 565 /mt to USD 529 /mt.
CRC price was down
from USD 1122 /mt to USD 1105 /mt due to lower exchange rate and demand.
HDG price also
decreased from USD 1091/mt to USD 1084/mt.
Steel products were
generally downward during last week in Iran as authorities have been
controlling warehouse inventories severely which has made traders more worried,
besides, ex-rate downward trend has made market participants more confused and
also US presidential election, which market participants preferred waiting
policy, some believes a new US president would change market situation
weekly average ex-rate for Steel Products (SANA): Rials 268.084 1USD