Billet price was almost stable during last week. Size 150 mm was priced at Rials12, 700,000-12,800,000/mt on truck in Anzali including 5% VAT. Debar price started rising from Tuesday but billet price didn't change as supply level increased. CIS origin billet is around USD610/mt cfr northern ports but importers have problems for opening LC and applying for import permit is not an easy work.
There is a rumor in the market about a high tonnage parcel of billet which has not arrived Iranian ports yet. If so, billet price would decline significantly in domestic market.
Long products market was quiet till middle of last week, and then prices started rising. Higher exchange rate made traders worried about increasing prices in the future, so they started building inventories. Besides, in Iran Mercantile Exchange supply level was almost scarce, so prices were up around Rials300,000/mt .
For merchant bars, market was so sad till middle of the week, but they finished the week at almost Rials500,000/mt higher for some sizes.
It seems that long products market is nearing the peak. As global prices are dropping, If government allow importing sections by open market exchange rate, (Which is Rials19,000/1USD), the cost price would be lower than current market prices. At the moment with ex-rate of Rials19,000/USD, debar price is USD680/mt cfr Iranian ports, after custom duties, the cost price would be Rials15,500,000/mt. If debar base price increase to more than Rials16,000,000/mt, surely market would be full of import parcels. Global markets prices will drop during in Ramadan, but if import conditions allow, it would help the market.
2 mm thickness HRC was priced at Rials11,600,000/mt on truck in Anzali including 5% VAT by beginning of the week , but by Monday onward it was up to around Rials 12,500,000/mt . Other sizes of HRC are in severe competition with Mobarake Steel products and import parcels. Traders were trying to increase prices, but market was held stable. Any improvement in prices is unlikely till end of Ramadan, as inventory levels are high and supply levels is increasing.
Price of some sizes of CRC rose by Rials200,000-500,000/mt but for sizes like 0.70,0.80 and 0.90 mm prices were unchanged. As Ramadan is coming and CRC consumers are mostly not working during summer time prices won't change significantly.
HDG price didn't change last week despite rises a week ago. Traders were dealing cautiously.
CRC and HDG import level is limited but besides demand level is scarce too.
(Ex-rate: Official: Rials 12,260/1 USD, Market: Rials 19,239 / 1 USD)
Iran Steel Service Center