Billet
Billet price surged surprisingly during week 28
in Iran. Market participants were expecting base price of USD 381 /mt ex-work
excluding 9% VAT (USD 415/mt including VAT) for Khouzestan Steel co billet size
150 mm at IME (Iran Mercantile Exchange) due to pressures from re-rollers. Khouzestan
steel co resisted against pressures due to limited market inventory and was
succeeded to sell its billet at base price of USD 409/mt excluding VAT (equal
to USD445.5/mt VAT included). On Wednesday Esfahan Steel co offered 5000 tons
of its billet at base price of USD 413 /mt in IME to be finalized on Saturday.
There was around 100,000 tons of demand for the offer. Market expect billet
price rise gradually.
Private sector mills were offering their billet
at USD 413/mt ex-work including VAT by start of the week and increased it by
USD 34/mt during the week.
Billet size 125 mm also improved by USD 29/mt
to USD 442 /mt ex-work including VAT.
Therefore, billet finished price was around USD
450 /mt which made DRI price also higher. DRI mills sale price has passed USD
212 /mt and traders were offering USD 227.5 /mt.
Khouzestan steel co billet price at IME work as
a base for pricing raw materials like DRI, pellet and iron ore concentrate,
though, other raw materials will also improve.
Generally, market is quiet and insiders expect at
least stable sentiment for billet in coming month.
Long
Products
Long products
started week 28 in upward trend. Debar size 14-25 was USD 486/mt ex-work Ahwaz
and USD 488/mt ex-work Esfahan including 9% VAT by last Saturday. I-beam size
14-18 average price was also USD 548 /mt ex-work including VAT. Market was
confused as raw materials and billet price were upward. Many market
participants were expecting quiet market due to current fast price surges. Therefore,
some traders increased offer levels. But mills expect higher long products
prices due to limited billet supply and increased their offer prices for longs.
By Monday as billet
price at IME surged upward, long products also followed trend. By end of the
week as Esfahan Steel co offered billet at IME, pressures declined and market
insiders thought fluctuations has ended. Meanwhile, Esfahan Steel co sold its debar
size 12-32 mm by last Sunday at base price of USD 448/mt at IME, which is equal
to USD 489/mt including VAT. Though, expecting another upward trend won’t be
unlikely.
Flat Products
CIS origin HRC 2 mm thickness started the week at USD 635 /mt on
truck in Anzali port and Chinese one was USD 624 /mt on truck in Imam Khomeini
port including 9% VAT and custom duties. Kazakh suppliers were not offering HRC
and shipment from Aktau port was faced with delays. MMK product improved by
EUR10/mt to EUR430/mt cfr Iranian ports. Supply level was limited and made
prices upward. By end of the week, HRC 2 mm thickness was USD 647 /mt in Anzali
port and USD 635/mt at Imam Khomeini port. By Wednesday, pipe and profile price
improved by USD 53/mt, which would make HRC price rise in coming days.
Price of thicknesses 2.5-15 mm was increased by Mobarakeh Steel co
due to limited supply. Low market inventory didn’t let customers ask for
discount. Besides, higher billet price will make slab price improve in near
future, which has made HRC sellers not interested to offer much.
HRP thickness higher than 15 mm, was being offered in high tonnage by
domestic leaders, but there was limited demand for it. Market participant
expect HRP price rise, but demand level should improve first.
CRC market improved a little. Last Saturday, it
rose by around USD 5 /mt, but there was no demand. Lower supply of Mobarakeh
Steel co and higher global prices made CRC price rise. Some CIS origin
purchases will arrive Iranian ports with delay in coming weeks. Global prices have
improved, therefore prices are not expected to decline in Iran. Besides demand
level will decline more in coming weeks due to summer Holidays of consumer sections.
HDG market was quiet. Market inventory is low
but demand level is also scarce. As CIS CRC sales has increased in July, market
insiders expect HDG market also improve in coming months in Iran.
Ex-rate:
In free market: Rials 37,800 /1USD
17th July 2017
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Iran Steel Service Center
IFNAA News &
Analysis
http://www.ifnaa.ir/en/hom