News

Iran Steel Market Trend in Week 44th, 2014


Billet

Billet price dropped by around Rials200,000/mt . Size 150 mm was offered at Rials16.7 million/mt on truck in Anzali including 8% VAT and size 125 mm was around Rials16.6 million/mt on truck in Anzali. Domestic production billet from Esfahan Steel Co was heard offering at Rials15.4million/mt base price at IME which would cost Rials16.65million/mt  after 8%VAT. This price level is not interesting for Iranian buyers, so Esfahan Steel Co was successful to sell 25,000 tones of it by delayed payment.

Generally future trend of billet price is not clear. Long products demand has decreased in one side which will lead to lower billet price. Billet size 120 mm in domestic market was traded at Rials16 million/mt  by some private mills. But at the other side scrap price is stable due to seasonal factors , so billet producers which use scrap as raw material will experience lower margins.

Global price of billet is also downward as iron ore price is downward, crude oil price is dropping and markets are quiet. This downward trend in prices may lead to lower production ,so prices would became stable after production cuts.

 

Long products

 

Long products market was quiet during last week in Iran. Debar price dropped around Rials100,000/mt. Average price of Esfahan Origin debar declined from Rials18.8 million/mt  to Rials 17.98 million/mt. price of debar from other producers also dropped the same.

I-beam price also decreased by around Rials80,000/mt to Rials18.25million/mt ex-works.

Market inventory has bottomed and warehouses are almost empty, so market participants hope that stockpiling improve market sentiment a little.

 Meanwhile, Iranian steel producers are trying to increase export, some analysts believe that sanctions against Russia would be new chance for improving Iran steel export.

 

Flat products

HRC price was almost stable during last week in Iran. HRC 2 mm thickness declined by Rials200,000/mt to Rials20.6 million/mt on truck in Anzali including 8% VAT. Other sizes were unchanged in price. HRP price from Kavian Steel Co declined by Rials50,000 /mt due to lower supply level.

CRC price didn’t change, but domestic supply level is limited. Korean and Chinese origin CRC were purchased by Iranian traders at USD671 /mt and USD640/mt cfr Iranian ports. Though, CRC price may decline in coming months as demand level is low unless white goods export level to Russia or other countries increase.

HDG market didn’t change as currently supply and demand level has become almost the same.

 

Ex-rate:

In Exchange Room: Rials 26,714/USD       

In free market: Rials 32,520 /USD 

 

Iran Steel Service Center

Nov 2, 2014 15:47
Number of visit : 522

Comments

Sender name is required
Email is required
Characters left: 500
Comment is required

Address

Tehran- Karimkhan Boulevard- South Khordadin St.- Shahid Vafaei Vermsabadi-Alley-2

1584813451

021-83750

021-83750