Billet price had some fluctuations during last week in Iran but
by end of the week stayed stable compared to beginning of the week. It was USD 551/mt
ex-work including 9% VAT by Saturday, reached USD 560/mt by mid-week and
finished it again at lower than USD 552/mt.
Higher base price at IME ( Iran Mercantile Exchange) made price
upward but quiet rebar market made billet price down again. As DRI market is
upward, market insiders believe there is no reason for downward trend in billet
Rebar market experienced some fluctuations as started the week
at USD 605/mt and finished it at USD 609/mt ex-work including 9% VAT. Rising prices
at IME signaled an upward trend in the market, while cheap purchased parcels
are in warehouses. We have to wait for the cheap inventories to be digested in coming
weeks, while there is no guarantee that rebar price will not decrease.
I-beam market was also quiet as its price has reached the
bottom. It changed from USD 585/mt to USD 590/mt ex-work including 9% VAT.
Two mm thickness HRC ex-work Mobarakeh on last Saturday was USD 960
/mt, which reached USD 971 /mt by Tuesday. Mobarakeh HRC market was cold and its
consumption has dropped sharply. We will soon see its HRC price rising because market
disruption is already quite obvious.
Oxin co HRP remained almost unchanged at around USD 983/mt. The
mill has filled export quota to Iraq for delivery within next two months and
has closed some export orders to other countries, which are increasing. It is
heard that its export price is USD 885/mt FOB Iranian ports for the last orders.
Domestic market is quiet, so export market activity is rising.
Kavian co HRP remained stable at USD 917/mt. The mill is not yet
active in export market and is controlling domestic market.
CRC price improved slightly from USD 1095/mt to USD 1106/mt by
end of the week. It seems that new government controls is showing its effects
on the market.
HDG market was quiet and changed from USD 1136/mt to USD 1139/mt.
The government has been trying for years to control the economy,
but it has not been succeeded and will not as people’s interest and demand
change but rules don’t. In flat products market, government control would make flat
products be available to just who are accepted by the government, so in the
near future we will see closure of many small units because this limits supply level
and prices would increase sharply. Premium trading will start next week. These
deals are very ambiguous and that is why suppliers seek to link their own
supply and lock it in with raw materials. Does anyone know what the price of
pellets or DRI will be in three months? If it is higher than today, what would
market players do? The only conclusion is that the market will face two or more
rates, and usually in these conditions the market tends to higher price. So the
bottom line is that prices won’t decrease.
CBI weekly average ex-rate for Steel Products (SANA): Rials 270,717
15 Nov 2021
Iran Steel News Bulletin