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Iran steel market Trend in Week 41st , 2017

Billet

Billet market experienced a nervous and exciting week. Billet sizes 150 mm started the week at USD 439 /mt ex-work including VAT and size 125 mm was USD 434 /mt on Saturday. By Wednesday, size 150 mm surged severely to USD 499 /mt and size 125 mm was USD 492 /mt. Khouzestan Steel co offer on Wednesday at IME made prices calm and finally they finished the week at respectively USD 494 /mt and USD 487 /mt ex-work including VAT.

Market insiders were talking about different factors behind such a rise in billet price including higher ex-rate, low inventories, improving long products demand and so on. But any of them can’t make 13% sudden rise in price during just 3 days something logical. May be we can say main reason was nervous market sentiment which might be clear in coming days.

 

Long products

Debar diameter 14-15 mm average price improved by USD 10 /mt during last week in Iran domestic market for both Roohina Steel co and Esfahan Steel co as prices reached USD 544 /mt ex- work Dezfool and USD 579 /mt ex-work Esfahan including 9% VAT. Average price of I-beam, sizes 14,16,18 also rose from USD 683 /mt to USD 692 /mt ex-work Esfahan including VAT by end of the week. It should be noted that demand is not supporting these upward trends. Actually some market participants mentioned higher ex-rate as main reason behind upward trend, some others believed higher billet price made long products prices improve. Different factors made price rise by around USD 20 /mt for some sizes during the week.

 

Flat Products

HRC 2 mm thickness started week 41st at USD 681 /mt on truck in Anzali port including 9% VAT and custom duty. Ex-rate fluctuations made HRC upward as finished the week at USD 736 /mt. Besides, import offers are downward as latest offer from MMK has been Euro 480 /mt cfr Anzali and Kazakhstan origin cargo was USD570 /mt cfr.  HRC with 2.5 mm thickness was in severe shortage. Thickness 3- 15 mm average price also rose from USD 623 /mt to USD 630 /mt ex-work including VAT mainly due to higher price of thicknesses under 10 mm. Generally, most thicknesses of HRC were upward in price but mainly due to limited supply level. HRP market was quiet. Oxin co products stayed at around USD 581 – 584 /mt ex-work including VAT. Kavian co products were in the same situation. This market is facing with lack of demand and high inventory level.

CRC market was still calm and quiet. Average price of thickness 0.40-2.5 mm improved by USD 10/mt to USD 791 /mt ex-work including VAT. Higher price was due to rise in ex-rate which affected import prices. But in global markets, CRC price is downward and has been Euro 510/mt cfr Iranian ports.  

HDG market was quiet. Higher ex-rate made some import cargoes prices increase. Therefore, average price increased from USD 901 /mt to USD 913 /mt ex-work including 9% VAT.

 

Ex-rate:
In free market:  Rials 40,070  /1USD

16th   Oct 2017

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Iran Steel Service Center

IFNAA News & Analysis                                                 

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

 

 

 

 

Oct 16, 2017 09:29
Number of visit : 928

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