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Iran Steel Market Trend in Week 29

Billet

Iran billet market was almost stable during last week. Despite upward trend in Long products market, Billet size 150 mm hovered around Rials12,800,000/mt on truck in Anzali including 5% VAT. During holy month of Ramadan market participants do not expect any rise in billet price, due to market sadness. Besides, during last Iranian month (21 Jun- 21Jul) billet import level was up significantly. During first 26 days of last Iranian month around 288,000 mt of billet has been imported, compared to just 123,740 mt a month ago.

Some parcels of billet with 20-40 days delivery time were offered at Rials11, 000,000/mt and size 130 mm was transacted at around Rials12,500,000/mt in Southern port of Imam Khomeini. Some market participant anticipates a downward trend in billet market as supply level has grown. Some others believe that low inventory level of re-rollers won't let billet prices decline. Billet market didn't follow upward trend of long products market during last week in Iran.

 

Long products

 Limited supply level made sections prices upward during week 29 in Iran. By beginning of the week debar price rose by Rials 500, 000/mt but I-beam price was down. This trend continues till middle of the week, after that I-beam price became upward too and was back to last week level. In Ahvaz market, debar size 8-30 mm was up from Rials 14,875,000/mt to Rials 15,376,000/mt including 5% VAT. Average debar price in Isfahan market for size 16-25 mm also increased around Rials850,000/mt to Rials15,850,000/mt. Merchant bars prices were upward too till Wednesday which were picked and became stable.

Some market participants believe that long products market has picked. As global prices are downward, if import level increase, would influence domestic market and make prices down. At the moment Iran long products market is facing limited supply level and low competition. During Holy month of Ramadan demand level is dropping and would make prices more stabilized. Another factor behind higher prices during last week was low supply level at Iran Mercantile Exchange.

Last week market was waiting for Isfahan Steel mill to supply debar at IME, but it didn't happened and market participants are now waiting for private sector mills to increase supply level.

 

Flat products 

HRC market was almost unchanged during last week in Iran. HRC thickness 2 mm was priced at Rials12,700,000/mt on truck in Anzali including 5% VAT. For other sizes, HRC price increased by Rials500,000/mt by Monday at IME, so influenced market prices too. Some sizes were up by Rials20,000/mt till end of the week. As flat products market is quiet and demand level is low, so nobody expects significant changes during current month.

In CRC market, higher price at IME and low supply level made prices upward. HDG market became upward too especially by middle of the week, but demand level was limited. CRC low supply level has helped HDG market trend as it affects HDG supply level too.

(Ex-rate:  Official: Rials 12,260/1 USD, Market: Rials 19,118 / 1 USD)

Iran Steel Service Center

Jul 22, 2012 12:34
Number of visit : 698

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