Billet
Iran billet market was sluggish like current last weeks. Domestic product was around USD726-731 / mt ex-work and imported billet size 150 mm was around USD 749-752/mt on truck in Anzali including 4% VAT. Long products market is in negative sentiment and has affected billet demand too.
Billet inventory of steel mills has dropped. As a result, at the last days of week 47, transactions levels increased but in small tonnages.
Generally in near future billet market won''t experience any rise in prices.
Long products
Long products market was very quiet during last week in Iran. It was the last week of the month besides cold weather and coming week''s religious mourning affected the market depression more.
I-beam price was downward for all sizes. Debar price dropped by USD10/mt to USD841/mt . Angle price dropped by USD10/mt and channel by USD14/mt during last week.
Main reason for sections market current situation is lack of demand. But many mills have declined production level from about 4 month ago in the middle of summer. They are working at minimum capacity. Just 3 mills are producing all sizes o I-beam from 10-32 mm other just 2 or 3 sizes.
As production level is decreasing, mills will face financial problems. Any hope for rise in prices is unlikely so no trader is interested in working and buying for coming months needs. So market liquidity has dropped and will make worse production problems.
Flat products
HRC 2 mm thickness was offered at USD873-875/mt on truck in Anzali but dropped to USD864/mt and get back again to last levels by end of the week. The price volatility and lack of demand shows that price would be downward during coming weeks.
For HRC thickness 2.5-6 mm, due to higher supply level of Mobarake Steel and lower demand, its price dropped by USD19/mt. If the mill increase average delivery time, market would stabilize.
8-15 mm thickness hot rolled plate price decreased more than any other flat products last week in Iran. As Mobarake Steel is supplying the material at high tonnage and import offers are competitive too. So 8 mm HRP was USD818/mt on truck in Isfahan. Market participants talked about imported parcels of 8-30 mm HRC and HRP ready for coming to domestic market from this week.
Last week Mobarake Steel was not offered at Iran Mercantile Exchange, many traders welcomed this policy at the moment. If the mill continues supplying just CRC and HDG in coming weeks, it would help flat products market stabilize more. As limited parcels has been transacted at IME, so market participants are not concerned about Chinese parcels which would reach the market in coming weeks. Many believe exchange rate would rise more till end of the year so they are not worried about declines in prices.
CRC market price continued increasing due to lower supply level of Mobarake Steel and some problems in custom office for import parcels. But its price has picked and more price increase would be limited.
HDG market was calm last week. Supply levels are low but demand is scare too.
In import market HRC 2 mm from Kazakhstan suppliers was offered at USD650/mt and CRC at USD750/mt cfr Anzali. Chinese HDG was about USD810/mt cfr Imam Khomeini Port. As global prices are downward, it is expected that import offers in Iran flat products market would drop in coming weeks.
Iran Steel Service Center