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Iran Steel Market Trend in Week 52nd , 2015

Billet

Billet price was slightly downward despite limited supply level. Billet size 150 mm was offered at Rials10.2-10.3 million/mt ex-work including 9% VAT, with no transaction finalized. Size 120 mm from small mills was offered at Rials9.5-9.7 million/mt. generally, demand and supply level both were limited.

Billet price is at the bottom, therefore producers have declined production level to avoid any further decline in price. A quarter ago there were many different sizes available in the market at high tonnage, now market availability is limited. When export market improves, domestic supply would be more limited.

 

Long products

Debar price experienced around Rials200,000/mt decrease during last week in Iran domestic market. Average price of debar diameter 14-32 mm from Esfahan Steel co declined by Rials50,000/mt to Rials13.2 million/mt ex-work including 9% VAT. Khorasan Steel Co product also declined by Rials100,000/mt to Rials12.2 million/mt ex-work including 9% VAT.

Price of I-beam size 14,16,18 mm dropped from Rials16.313 million/mt to Rials16.280 million /mt. Angle and channel were down by Rials300,000/mt. Debar price is near bottom, but angle and channel have more space for declining. Therefore, they will continue decreasing.

Profit margin is very limited for debar producers. Besides, demand level is low, so we can’t expect any improvement in debar market in near future.

 

Flat Products

HRC 2 mm thickness was downward during last week in Iran, by middle of the week prices improved. Its price improved by Rials100,000/mt to Rials13.6 million/mt on truck in Anzali including 9% VAT. If imported by exchange room rate, this price is profitable. There are some rumors about USD30/mt cut for Kazakh origin HRC in near future. But generally global prices are at the bottom. HRC 2 mm thickness import level increased by 20,000 during last Iranian month (22 No-21 Dec) and importers are not interested any more. Prices may be stable in coming weeks.

HRC 2.5-6 mm thickness was stable as Mobarakeh Steel Co stopped offering. Supply level is limited but demand is also scarce and prices are not improving. Besides, importers are worried about higher ex-rate and can’t be active in import market seriously.

HRP market was depressed with Oxin co price dropped by Rials300,000/mt and is not expected to improve as Chinese cargoes with 15% price competitiveness are coming to the market. Besides, buyers are not satisfied with Oxin co delivery terms.

CRC price was down by Rials300,000/mt. CRC price in global market is stable at the moment but may drop by USD20/mt in coming weeks. CRC import level to Iran increased by 10,000 mt during last Iranian month (22 No-21 Dec) to around 36,000 mt. Higher import level made prices downward. Market participants expect CRC price be stable in coming week.

HDG market stayed quiet with prices down by Rials300,000/mt.

Ex-rate:
In Exchange Room : Rials 30,119/1USD       
In free market    : Rials 36,600/1USD

Dec 27, 2015 10:37
Number of visit : 890

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