News

Iran steel market Trend in Week 05th, 2018

Billet

Billet market was upward during last week in Iran. Size 150 mm started the week at USD 421 /mt ex-work including VAT and size 125 mm was USD 412/mt ex-work including VAT. By end of the week they reached respectively USD 427 /mt and USD 421/mt ex-work including VAT.

Khorasan Steel co billet was transacted in limited tonnage at base price of USD 404 /mt ex-work excluding VAT which after 9% VAT would be USD 440 /mt. Khazar Steel co billet also rose from USD 440/mt to USD 444/mt ex-work including VAT.

Reasons behind upward trend of billet price was:

1- limited supply level of scrap and DRI

2- transportation problems due to snowy weather and closed roads which made difficult transporting raw materials to the mills.

3- Power cuts at mills due to cold weather which made billet production lower.

With cold and snowy weather problems passing, billet production will rise which would rise demand for scrap and DRI. At current prices producing billet from scrap is not much affordable but mills would gain profit yet if using DRI as raw material.

Last week, DRI was offered in domestic market in limited quantities at base price of USD 220-224/mt. Besides DRI export offer is USD295/mt fob Bandar Abbass also in limited tonnage.

Global billet market is downward as Khouzestan Steel co export offer has been sold under USD500/mt fob Iranian ports, but buyers insist on more discounts as lower offers are available.

Last week also some news was heard about exporting Iran steel HBI. Buyers were asking for USD 320 /mt cfr South European ports which was at least USD 10/mt lower than seller’s offer price.

Some Iranian traders also has started exporting billet which would be good news for improving export level and better competition in domestic market, which would be ended in increasing Iran presence in global markets.

 

Long products

Long products market was generally quiet during last week. Average price of debar diameter 14-25 mm produced by Esfahan Steel co changed from USD 531/mt to USD 532/mt ex-work including 9% VAT by end of the week.

Esfahan Steel co is working on expanding its export market, therefore, domestic supply level has decreased and this limitation would increase in coming months.

Average price of debar from different producers was USD 465-507/mt ex-work including 9% VAT by last Saturday and Sunday. By Tuesday it declined by USD 2/mt but from Wednesday became upward by around USD 4/mt due to higher market activity as bad weather conditions improved and roads became open, besides, billet supply became limited. In coming days, limited billet supply will be more as long products demand will increase too. This may make prices upward for a while.

I-beam price also fluctuated like debar. Average price of size 14,16,18 dropped from USD 595/mt to USD 588/mt and finished the week at USD 591/mt ex-work including 9% VAT.

At the moment Iran long products market is very sensitive and respond to different factors seriously such as cold weather and snow rain, ex-rate fluctuations and many other outside factors.

 

Flat Products

Imported HRC 2 mm thickness dropped by USD 4/mt to USD 581/mt on truck in Anzali including VAT and custom duties. Importing HRC at Euro 560/mt cfr Iranian ports is not affordable at all. Therefore, its import level declined by around 18,000 tones during last Iranian month to 66200 tones. Besides, domestic competitor has taken market from importers with USD 42 /mt cheaper offers. HRC thickness 3-15 mm was offered by Mobarakeh Steel co at USD 555/mt by beginning of last week which declined to USD 554/mt by end of the week.

HRP market of Oxin and Kavian Steel mills was upward. Kavian co product is almost scarce and its price rose from USD 502/mt to USD 527/mt ex-work including 9% VAT. Oxin co HRP supply is also facing with some problems and its price rose from USD 539/mt to USD 547/mt ex-work including 9% VAT.

CRC market was quiet as cold weather affected its demand. Average price of thicknesses 0.40-2.5 mm dropped from USD 684/mt to USD 679/mt on truck in Anzali including 9% VAT and custom duties. Market is not expected to improve in near future as import level has been downward in current months. Besides, higher domestic supply has made market sentiment more negative and demand is scarce.

HDG market was stable and supply-demand level was balanced. Market is sensitive but due to higher zinc price, HDG market would also be upward.

 

Ex-rate:
In free market:  Rials  47.310 /1USD

05 Feb ,2018

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Iran Steel News Bulletin

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

 

Feb 5, 2018 15:10
Number of visit : 211

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