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Iran steel market Trend in Week 38th , 2017

Billet

Billet market was downward during last week in Iran. Billet size 150 and 125 mm started the week in retail market at respectively USD 456.5 /mt and USD 449 /mt ex-work including VAT. Downward trend started by Saturday and continued till end of the week.  Size 125 mm was heard lower than USD 436 /mt in some cases. Khouzestan Steel co billet base price at IME which had been sold at USD 551 /mt  ex-work excluding VAT, was also heard at USD 500 /mt by end of the week and seller was ready to give some more discount.

Global iron ore price has dropped to under USD70/mt cfr China which is the lowest during last 5 months. Import billet is offered at USD490-520/mt fob black sea but buyer is limited. This trend may end in lower prices for import offers in billet market which would affect Khouzestan Steel co sale price definitely. In Iran market DRI price has been currently stable and scrap is in limited supply level. When long products market is quiet, billet suppliers are mostly facing with high inventory level. This trend may finish in production cuts.

Generally, market participants believe billet price in Iran won’t decline more than USD 26 /mt. Market would be quiet till October due to religious mourning ceremonies, then a clear trend may appear.

                                                                                      

Long products

Long products were downward through last week in Iran. Debar diameter 14-25 mm offer by Esfahan Steel co dropped from USD 596 /mt to USD 577/mt ex-work including VAT by end of the week. The same sizes were downward in Dezfool market too as declined by USD 2.5 /mt to USD 578 /mt ex-work including VAT.

Average price of I-beam size 14,16,18 also dropped from USD 692 /mt to USD 680 /mt ex-work Esfahan including VAT. Sellers were in trouble as some small mills were ready for up to USD 28 /mt discount.

 Buyers are absent worried about more declines in the market. At the moment billet and debar price gap is around USD 77 /mt in Iran domestic market which should be near USD 51 /mt normally.

 

Flat Products

HRC 2 mm thickness experienced around USD 5 /mt decline during week 38 to reach USD 703 /mt on truck in Anzali including 9% VAT and custom duty. In domestic market Mobarakeh Steel co HRC 3-15 mm thickness dropped from USD 648 /mt to USD 647/mt ex-work including VAT. For HRP 15-40 mm, Oxin co product declined by end of the week due to lower slab price at IME which declined by USD 23 /mt. Average plate price was down from USD 606 /mt to USD 597.5 /mt ex-work including VAT.

Kavian co HRP was also downward from USD 603 /mt to USD 594.5/mt ex-work including VAT. HRC market is facing with weak demand at the moment.

CRC market was also quiet and experienced some declines by end of the week. Sellers were resisting against declines but finally accepted market downward trend. In import market some sellers were ready for USD 20-30/mt discount. Market insiders expect some declines for coming offers. Meanwhile CRC consumers are still in Holidays and market trend may became clear in October after current religious mourning ceremonies.

HDG market was stable with some sizes of 0.40-2 mm improved due to supply shortage from USD 926/mt to USD 930/mt  ex-work including VAT.

 

Ex-rate:
In free market:  Rials 38,990  /1USD

25th  Sep 2017

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Iran Steel Service Center

IFNAA News & Analysis                                                 

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

 

 

Sep 25, 2017 14:01
Number of visit : 849

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