Billet was upward
during last week in Iran steel market. Average price rose from USD 894 /mt to
USD 956.5 /mt ex-work including 9% VAT. Two reasons behind upward trend were:
1- Higher billet
base price at IME ( Iran Mercantile Exchange). Base price of Khorasan Steel co
billet rose by USD 26 /mt within 3 days as the mill sold it at USD 830 /mt
ex-work excluding 9% VAT last Saturday.
2- The strike of
truck drivers, which has made DRI and billet transportation limited. Therefore,
billet production and supply also declined. The situation will improve after
the strike be ended.
Debar diameter 8-32
mm started week 39th at average of USD 1058 /mt ex-work including 9%
VAT. As Esfahan Steel co offered at IME at base price of USD 979 /mt ex-work
excluding 9% VAT on Wednesday, retail market price surged upward to USD 1149
/mt ex-work including 9% VAT. But as the mill’s contracts canceled price
dropped back to USD 1093.5 /mt ex-work including 9% VAT. I-beam market was in
the same situation.
As truck drivers’
strike made last week transportations mostly inside cities between warehouses,
therefore, the fluctuations at IME was not an indicator of retail market
Besides, the mills
which are working outside IME, have a separate market for themselves and do not
follow IME fluctuations.
HRC 2 mm thickness was USD1386 /mt on truck in Anzali including 9%
VAT and custom duty las Saturday. It reached around USD 1476 /mt by Wednesday.
Domestic products from Ahwaz Rolling and Pipe co were not in the transactions
due to truck drivers’ strike. After the strike prices may drop as mills inventory
level has increased and would rise market inventory after strike.
Mobarakeh Steel co HRC thicknesses 3-15 mm were transacted at
average of USD 987.5/mt ex-work including 9% VAT. After the mill sold at IME,
retail market price rose to USD 1029/mt.
Oxin co HRP was upward due to lower supply because of drivers’
strike and also higher slab price.
CRC price surged upward as for thickness 0.50-2.5 mm rose from USD 1108
/mt to USD 1676 /mt ex-work including 9% VAT till Wednesday. Limited supply
level and problem in transporting cargoes made price rose this much. Higher
base price at IME also was the other main reason. It rose from USD 771/mt on
September 03 to USD 1186.5/mt ex-work
excluding 9% VAT during last week. The price didn’t end in a deal but shows IME
potentials for upward trend. Another point to be mentioned here is that higher
ex-rate made CRC upward more as CRC is raw material of many materials which are
HDG price also improved like other flat products as for thickness
0.5-2.5 mm price rose from USD 1729 /mt to USD 1962.5/mt ex-work including 9%
VAT. The reasons behind HDG upward trend were the same as CRC, besides higher
Zinc price and its supply which is in relation with ex-rate and also the gap between
HDG supply and demand were other reasons. Demand is low but supply level has
Steel News Bulletin