Billet
At the beginning of last week, long products price increased in Iran market, so billet price was upward too. It finished the week at $545/t fot Iranian northern port at Caspian Sea including 3% VAT, compared with $520-525/t at week opening.
Domestic price has increased, import levels in last Iranian month (22 May- 21 June) decreased 27% M-O-M but there is no buying interest in the market.
Lowest price of CIS origin billet was $470/t during 2 weeks ago. Now suppliers have finished booking for July product and current offer price is around $510-520/t cfr Northern Iranian port. But by current market prices, they cannot find any customer at these levels. Moreover it’s not cost effective for Iranian longs producers yet to convert billet to section.
Long products
Last Sunday, long products prices started increasing in Iran market, especially for rebar and angle, which were up at least $5/t. This trend continued till Wednesday. I-beam price was up on Sunday but after that just changed a little.
Many traders are worried about increasing sanctions against Iran, besides they believe that prices have reached the bottom, so they have increased purchases. But many others believe this improvement in buying is temporary as is not due to real demand.
Import offer price of rebar is $550-560/t cfr southern Iranian ports but average domestic EXW price is $680/t including 3% VAT, though it is not cost effective for Iranian traders to import.
Many domestic mills are producing at lowest levels and completely pessimistic about future trend.
If Iran’s government chooses a new plan to increase steel demand, prices would increase, because in last 2 months import level was so limited.
Flat products
Last week flat products market in Iran had an upward trend. Chequered hot rolled plate price was up around $20/t, HDG $16-20/t and CRC around $5-20/t. the reason for these increases is low supply of Mobarake Steel mill and limited import level during 2 months ago. Price of HRC 2 mm thick was $535/t including 3% VAT on Sunday but finished the week at $585/t.
Meanwhile import offer price of the material is $560/t cfr and CRC of CIS origin is $650/t.
Many suppliers which use LC from European banks are worried about effects of new sanctions against Iran on their business, so they are going out of Iran market. It’s likely that this attitude would become more epidemic. Meanwhile Mobarake Steel mill is supplying CRC at its lowest records and some grades of CRC are not available in domestic market at all.
There are two views about CRC market in next two months. In one hand, current bookings for CIS material would be available in Iran next month and this will lead to decreases in its price.
The other view says because HDG import is restricted, CRC demand for galvanizing would increase, though CRC market would not see strict drops.
HDG price increased around $5-20/t last week. Low demand of the material has lead to heavy decrease in import volumes since mid February.
Iran Steel Service Center