Iran Steel Market Trend in Week 01st , 2015


Billet price 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.

As long products demand is down, many billet mills prefer minimum production level. Mareket participants expect this downward trend continue as long products prices are declining.

Some market participants anticipate billet prices at Rials 13 million/mt in coming future which would lead to production stoppage at many small mills.


Long Products

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 excluding VAT.

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.


Flat Products

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

Jan 4, 2015 10:15
Number of visit : 659


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