Billet- Downward as expected
As predicted, price of billet had down ward trend during last week.
On Saturday, price of billet size 150X150 mm was USD714/mt on truck in Anzali and it was priced at USD699 /mt in Imam Khomeini port. But at the end of the week, the price collapsed for USD20/mt in both destinations.
The main reasons of billet price depression are:
1-Lull market of sections and its silent demand
2-Import of low purchased billet at USD 600/mt
3- Refinance Letter of credits are available to import billet, so most of speculators are using this type of LC to import billet for their cash fellow covering.
4- Government is controlling sections prices in Tehran Metal Exchange (TME), and mills need cash, so we shouldn’t expect any improvement in demand and price of billet in near future.
For the time being, billet is being offered at USD660-670/mt cfr North Iranian Port by traders.
Long products- Supply –demand imbalance
Price of sections reduced during past week. In spite of higher prices in global markets, it seems that downward trend will continue In Iran.
The reasons are:
1-Over supply by domestic mills
2-Control of sales prices in TME
3-Collapse of billet price
4-And the most important factor; weak demand
Besides domestic supply, Iran is also importing debar from different countries, from Hong Kong up to Egypt.
Imported debars, had been purchased 40 days ago at low rates of USD620-630/mt. But right now debar offer prices to Iran South Port are around USD700/mt cfr.
Flat products- Low demand and stable prices
It’s about 2 months that flat products supply is decreasing in Iran market, but prices had been kept stable due to government controls and shortage of demand.
Hot rolled coil 2 mm started to decrease since last Saturday. Till Tuesday it lost about USD 20/mt and reached USD699/mt on truck in Anzali. On Wednesday, the price improved a little for about USD10/mt.
HRC price of Mobarake Steel and Oxin Steel mills also dropped by about USD 10/mt. but CRC and HDG had a stable market. Returning of money for these two items became shorter to cash during past week.
Mobarake Steel was the main supplier of CRC market during last week, so the market was almost stable.
HRC 2 mm is submitting by traders at USD 665-670/mt and CRC at USD750/mt cfr Northern ports. CIS mills are absent and probably we’ll see them with the new prices at the end of next week.
Iran Steel Service Center