Billet
Last week billet market in Iran was in downward trend. By the beginning of the week when long products market especially rebar and I-beam was downward, no one was interested in buying billet too.
May be a reason is Iranian state policy to decrease the price of billet but surely main reason of billet decreasing price was market stagnancy and silent trend.
Billet size 150 mm started the week at US$765/mt fot northern Iranian port but finished the week at around US$735/mt.
CIS origin billet was offered for US$660/mt cfr Anzali. At the end of the week a parcel was offered for US$620/mt cfr Anzali with prompt delivery. As July-August bookings with at least US$100/mt cheaper prices are on the way to Iran, it’s unlikely that billet price increase in Iran, especially as government is very cautious about long products price increases and is trying to decrease it.
Long products
By last Saturday, long products prices started falling in Iran market mainly due to lack of real demand. But by the middle of the week, as market confidence was back to the market because of hopes about supply in Tehran Metal Exchange and increasing prices increased, traders stopped offering. But after that on Wednesday, increasing trend of debar price was prohibited and Khorasan Steel mill deal was canceled. Isfahan Steel was offering at last weeks prices, so again traders were back to the market and were sure that prices won’t go up more than current levels.
As most of the sections purchases will be just for restocking and construction activities will decrease during next months, clearly debar price won’t be in rising trend as imported debar from UAE is coming to Iran with cheaper prices.
At the moment UAE origin debar is offered for US$600-620/mt CFR Bandar Abbas and traders offer it at around US$640/mt delivered at Bandar Imam Khomeini.
Flat products
From last Saturday falling trend of flat products in Iran market started. HRC 2 mm thick offer price decreased more than US$5/mt to US$680/mt and till Monday it was down to US$ 668/mt. But by middle of the week increases began and finished the week at US$ 700/mt.
Other sizes of HRC were in upward trend at the end of the week but limited deals were done.
During last week CRC market in Iran was so silent and very limited volumes were offered at. HDG price was falling due to low demand and Mobarakeh Steel mill booking coming to market.
Many Iranian market participants are hopeful about a better market and more activities in next month.
Due to low inventories and limited supply, no one expects flat products prices to decrease. Offer price of imported HRC 2 mm thick is US$640/mt and CRC US$740 both of them CIS origin. As Iran flat products market is silent and traders buying interest is limited, it’s expected that import offer prices fall in the near future.