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 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.
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.
In Exchange Room: Rials 26,714/USD
In free market: Rials 32,520
Iran Steel Service Center