experienced reductions during last week in Iran. Price of billet size 150 mm
dropped from Rials16-16.1 million/mt to
Rials15.7 million/mt on truck in Anzali
including 8% VAT. In domestic market, Khouzestan Steel co offered around
130,000 mt of its 150 mm billet , but just sold around 90,000 mt of it at Rials
14.05 million/mt ex-works excluding 8% VAT. This made downward trend steadier.
Size 120 mm was offered at Rials 14.8
million/mt ex-works at the end of the week with no interest in buying.
products demand is down, many billet mills prefer minimum production level.
Mareket participants expect this downward trend continue as long products
prices are declining.
participants anticipate billet prices at Rials 13 million/mt in coming future
which would lead to production stoppage at many small mills.
Long products prices were downward and debar price dropped by
around Rials200,000/mt during last week. Market participants expect
Rials500,000/mt more reduction in debar price in near future as demand is
scarce and billet price is reducing.
As billet was sold at base price of Rials14.05million/mt, debar
base price should be Rials15.2million/mt excluding 8% VAT. But Esfahan Steel Co
sold around 6400 mt of its debar at base price of Rials15.7million/mt at IME
during last week. Recently debar sale price was around Rials16.1 million/mt
Many factors affecting
production costs including energy prices and wages have increased but
average price of debar is lower than a
year ago. Some market participants anticipate debar average price for current
Iranian Year ( end at 20 March 2015) be Rials700,000- 1 million/mt lower than
average price of last Iranian year. This statistics are no good news for
producers with heavy bank loans.
Some steel mills are looking for ways to increase export level to
Iraq, but they need government support to compete with Ukrainian and Chinese
products in the future.
Price of hot rolled coil 2 mm thickness dropped by Rials400,000/mt
to Rials19.6million/mt on truck in Anzali including 8% VAT during week 53rd. Supply level
increased as import parcels arrived in during 2 week ago were stocked due to
low activity in the market for religious holidays. But New Year Holidays in
supplier countries will help downward trend in Iran stop for a while.
Lack of demand and higher supply level from Mobarakeh Steel Co made
HRC 2.5-6 mm thickness price downward. HRP market also experienced around
Rials100,000/mt decline in price. Oxin co was not offering and Kavian Co supply
level was limited, but higher import offers will lead to more price declines.
CRC market was heavily quiet and prices dropped around Rials500,000/mt.
Higher competition due to more domestic supply and increasing import offers in
northern ports stocked from previous weeks affect market sadness. Some market
participants expect downward trend in CRC market continues. But some rumors
about stopping allocation of currency from exchange room for importing CRC in
near future made some participants more optimistic about future.
HDG market was also downward as CRC market price is declining and
demand level is low.
In Exchange Room: Rials27,202 /1USD
In free market: Rials35,010 /1USD
Iran steel service center