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Iran steel market Trend in Week 28th , 2019

Iran steel market Trend in Week 28th   , 2019

Billet

Billet price continued its bearish trend last week in Iran. Average price declined from USD 325/mt to USD 316 /mt ex-work including 9% VAT . On Sunday, due to fluctuations in exchange rate, billet price rose to USD 333 /mt , but with a fall in exchange market, billet price also declined. On Monday, discount race started and prices began to fall. Since Tuesday there was a lack of supply in the market, but demand was weak due to downward trend in long products prices, and traders were cautious and request for their minimum needs only. As a result, supply volume was limited and billet price ranged from USD 315/mt to USD 328/mt ex-work including 9% VAT  depending on the producer.

Long Products

Since last Saturday which average price of debar was USD 370/mt ex-work including 9% VAT , rose by higher exchange rate until it reached USD 380/mt on Monday, but few market insiders expected a boom. With a drop in ex-rate, debar price began to fall and reached USD 372/mt by Wednesday, which was still USD 2/mt more than beginning of the week. Market is expecting downward trend in long products but it will be in limited range as billet price downward trend has slowed down.

I-beam market experienced the same trend as debar. On Saturday, average price of Esfahan Steel co I-beam product sizes 14-18 mm was USD 370/mt , on Monday reached USD 378/mt, but till Wednesday it returned to USD 370/mt.

Esfahan Steel Company which had sold its debar basket at IME during previous weeks at base price of USD345 /mt, by last week sold it at base price of USD 327/mt excluding VAT for 6,600 tons, indicating a fall in prices. but I-beam size 14-18, which was USD 321.5/mt previous weeks, was sold at USD 332/mt excluding VAT by last week.

 The main reason for the drop in the price of debar is, according to most experts, the issue of export which doesn’t have a clear future.

Flat Products

Las Saturday, HRC 2 mm thickness was USD 496/mt ex-work Isfahan including 9% VAT, and reached USD 488 /mt by the weekend. Ahwaz Rolling and Pipe co ( ARP Co) product price also declined from USD 471/mt to  USD 464 /mt by last Wednesday, while its supply volume was limited.

Mobarakeh Steel co products with a thickness of 3 - 5 mm were subject to supply restrictions. Some grades, especially acid-washed HRC, were almost unavailable. Average price of Mobarakeh Steel co products thickness 6 to 15 mm, which on Saturday was USD 508/mt , fell to USD 498/mt ex-work including 9% VAT by end of the week.

Oxin co HRP was upward during last Saturday and Sunday, but till end of the week dropped from USD 474/mt to USD 472/mt ex-work including 9% VAT.

Some sellers were looking for buyers on Tuesday and Wednesday. By end of the week demand level was almost scarce which seems to continue for a while. Kavian co HRP also followed the same trend and declined from USD 473/mt to USD 469/mt ex-work including 9% VAT.

CRC market was almost stable and showed some improvements, with average price rose from USD 641/mt to USD 643/ mt . CRC supply level has been limited and Mobarakeh Steel co supply bottlenecks have also increased, which is why price of this commodity has improved. Besides, has been heard that export of CRC and HRC under 6 mm thickness is rising, which has worsened supply restrictions.

HDG market followed fluctuations of ex-rate. Its average price ranged from USD 750 to USD 758/mt, but since last Monday onward, fell to USD 743/mt ex-work including 9% VAT.

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CBI weekly average ex-rate for Steel Products (SANA): 115.804 Rials  / 1USD

  15 July, 2019

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Iran Steel News Bulletin

Jul 15, 2019 10:06
Number of visit : 52

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