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Iran Steel Market Trend in Week 35th 2015

Billet

Billet market was downward during last week in Iran and domestic production for size 150 mm was Rials11.8-11.9 million/mt ex-work including 9% VAT.

Billet size 125 mm in domestic market was Rials 11.9-12.1 million/mt ex-work including 9% VAT. It was upward due to lower production level. Market participants believe this upward trend is a warning alarm for billet market participants. Steel price is at the bottom and if steel market depression continues, billet producers will be forced to reduce production more.

 

Long products

Average price of debar diameter 14-25 mm experienced downward trend during last week in Iran from Rials14.31million to Rials14.27 million/mt ex-works including 9% VAT. The price for same material from Esfahan Steel Co dropped by Rials60,000/mt.

Price of I-beam size 14,16,18 mm from Esfahan Steel Co increased due to producer’s policies in the market.

Other long products were up by Rials100,000-150,000/mt due to production stoppage at one angle and channel mill for maintenance and higher billet price used as a raw material for them.

Generally long products market was fluctuating and market participants don’t expect significant change in prices as demand is scarce.

 

Flat Products

HRC 2 mm thickness was upward during last week in Iran and was offered by beginning of the week at Rials15.5 million/mt on truck in Anzali including 9% VAT and around Rials100,000/mt lower in Imam Khomeini Port. The reason behind upward trend in middle of the week was that despite stoppage of importing HRC 2 mm thickness with exchange office currency allocation, still some traders have import allocation from the past in their hand with exchange room currency rate. They didn’t buy the material due to downward trend in global markets, but the quantity of these orders is limited. HRC 2 mm price is expected to increase in coming weeks as import should be done with free market currency rate.

Price of HRC thickness 2.5-15 mm declined by Rials100,000-200,000/mt despite shortage of some sizes like thickness 8-15 mm from Mobarakeh Steel Co.

In HRP market, price of thickness 12-40 mm from Kavian Steel Co declined to Rials17.1 million/mt and made Oxin co products drop by Rials200,000/mt despite limited supply level.

In CRC market limited supply level is apparent. The reason is that currency allocation for importing this material has been stopped from exchange office and should be imported by free market rate.

Import price for CRC is USD420/mt cfr Northern or Southern Iranian ports and is not expected to decline significantly outside Iran. Besides, domestic leader Mobarakeh Steel Co is not supplying this material regularly in the market and some sizes are in shortage, therefore, price increase is inevitable for some sizes. Demand level is scarce but prices are at the bottom too and more downward trend in prices seems impossible.

HDG market was downward like current previous weeks and dropped by Rials100,000-200,000/mt.

 

Ex-rate:
In Exchange Room: Rials29,960 /1USD       
In free market: Rials33,810 /1USD

Iran Steel Service Center

 

Aug 30, 2015 12:47
Number of visit : 966

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