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