Billet
Billet market is weak but the price became stable. Size150 x 150 mm on 18th Nov sold at USD410.- per ton including custom duty and VAT. But trader feel that the price may come to USD400.- per ton. This is so cheap price. It is due market demand for long product is dead.
Import data shows that during the past 2 months, Billet imports decreased sharply, but it doesn’t mean that prices will go up since during May to September we had huge import but demand of debar and sections decreased during same period so stocks of billet and long products are high but demand is low.
Sections
Section market is silent, debar had stable condition, average market price of debar was USD 545.- per ton including VAT for Dia 8 up to 32mm, quality A3. Most of traders do nothing these days, like it is holiday. Isfahan steel mill sold a benchmark of 90.000 m/ton debar 8 to 32 mm and IPE 140 to 270mm at price of USD585.- excluding VAT delivery 60 days on cash payment. It means that market should expect IPE price will come down, but no hope for debar. As for debar there is many suppliers and Isfahan steel mill can not control market trend, specially nowadays that market is dead. On the other hand, imported debar is stocked in many warehouses around Iran, and this stocks does not allow price to move.
Debar now is offering at USD520.- to 540.- per ton CFR south Iranian port which cost price including custom duty and VAT will be USD650.- to 670.- per ton. Nobody at this price is willing to import. IPE size 200 up to 270mm of Europe origin is offered at USD620.- per ton CFR and cost price will be USD700.- per ton, duty and VAT paid.
UNP is offered at USD540.- per ton CFR, cost price for importer will be USD610.- per ton including custom duty and VAT.
Most of prices of above materials is similar or higher than retail market price in Iran.
Such price and lull market discourage all the traders to import steel. This situation is continued since five months before.
Flat products
Flat products had stable market. HRC 2.00mm had a jump of USD20.- per ton earlier last week, but at the end of the week again returned to previous level of USD600.- per ton including custom duty and VAT.
Import price of this item is USD560.- to 570.- per ton CFR north Iranian port for CIS products. Cost price for traders will be more than retail price.
Many traders expect Chinese cheap orders arrive to the market during Dec which will cause sharp price decline for these products. For HRC 3.00 to 15.00mm had stable market. Average offered prices CFR north Iranian port was USD550.- and cost price for importer is USD590.- per ton including VAT, and average sales prices of domestic products are USD615.- per ton including VAt, but demand is weak.
CRC market has seen some movements which it is due lack of supply by Mobarake and shortage of imported one but few traders show interest in import. CRC is offered at USD590.- per ton CFR Anzali and cost price is USD680.- per ton including VAT. Average domestic price is USD720. each ton, but few people risk to import since Mobarake may reduce its price which it will be shock for market.
Iran has long inactive days in future months, traders prefer not to risk and they are waiting to see market conditions.
Iran Steel Service Center