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