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Iran steel market Trend in Week 25th , 2017

Billet

Steel billet price improved significantly during last week in Iran domestic market but demand was still downward. Billet size 150 mm was offered up to USD 410 /mt ex-work including 9% VAT, but finally sold at USD 402 /mt. Actually it was between USD 402 – 408 /mt.  Billet size 125 mm was also offered at USD 383 – 391 /mt ex-work including 9% VAT.

The only reason behind billet price surge was limited DRI supply in Iran. DRI price passed USD 197 /mt during the week in Iran. DRI producers are active in export market, besides hot weather has made some mills cut production or start their annual summer repairs. Therefore, domestic supply level has dropped significantly. Some cargoes were offered at USD 190 - 192 /mt but was in limited quantity and didn’t affect market trend. Generally, billet price has peaked and long products demand level has dropped seriously, though, billet upward trend stopped.

By last Wednesday, Esfahan Steel co sold 82,000 of its long products at IME, which helped long products market become calm and affect billet market too. There are some talks that Chadormalou Mining Co would start its summer stoppage next week after Ramadan Holidays. As the mill is main supplier of pellet to DRI producers, market would face other fluctuations in coming weeks. Iran DRI production capacity will rise to around 25 million mt till end of the year from current 17 million mt. But market insiders believe just higher DRI production won’t help and market need to find a balance between export and domestic market.

 

Long Products

Debar diameter 14-25 mm improved by USD 16 /mt during last week to USD 438 /mt ex-work Ahwaz including 9%VAT. Esfahan origin material increased by USD 4 /mt to USD 446 /mt ex-work including VAT. Prices fluctuations started by last Saturday with around USD 3 /mt increase. By end of the week for some sizes price had improved by USD 21 /mt. By Wednesday Esfahan Steel co declined its prices by USD 3 /mt, but after many increases during the week. Actually the mill had sold around 82,000 mt of its long products including debar, I-beam and channel before the decline.

Angle and channel also experienced the same trend as debar during week 25th. From Saturday till Tuesday prices improved up to USD 17 /mt by average and finished the week with USD 5 /mt decline. In coming days Iran steel market would be unchanged due to religious Holidays of Ramadan ending. Market need to be a little calm after such surges. Besides, due to limited DRI supply and possible rise of Esfahan Steel Co base prices at IME, market still have space for more improvements.

 

Flat Products

HRC 2 mm thickness started week 25th upward. By Saturday morning it improved by USD 5 /mt to USD 577/mt on truck in Anzali port including 9% VAT and custom duty. At the same working day it reached USD 592 /mt. Main reason behind this surge in price was limited supply of MMK. Besides, domestic mills in north and south of the country also declined offer level in the market. Generally demand was limited too.

Market leader Mobarakeh Steel co products thicknesses 2.5 – 15 mm were also upward. It was up by USD 13 /mt for some sizes till end of the week. HRP thickness higher than 15 mm, was almost unchanged in price despite lower supply level from Oxin co. Limited demand level and also enough supply from Kavian Steel Co made plate market stable.

CRC price improved by around USD 5 /mt for some sizes by middle of the week due to rumors about some limitations for releasing imported cargo from custom office. Market is so much quiet that such rumors won’t help it improve. Besides, some market participants were talking about possible USD 10-20 /mt decline of CRC price in global markets, which has made sellers eager to get rid of inventories.

HDG market experienced a quiet week and prices stayed unmoved.

 

 

Ex-rate:
In free market:  Rials 37.570  /1USD

25th  June 2017

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Iran Steel Service Center

IFNAA News & Analysis                                                 

http://www.ifnaa.ir/en/home

Jun 25, 2017 10:58
Number of visit : 966

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