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Iran steel market Trend in Week 29th , 2019

Iran steel market Trend in Week 29th   , 2019

Billet

Last week billet market downward trend continued. On Saturday, the average price was USD 318 /mt and reached USD 311/mt ex-work including 9% VAT by the weekend. Only on Sunday, the market saw an increase in the average price to around USD 323/mt, which was due to the supply of Khuzestan steel billets with a letter of credit. The request for more than 120 thousand tons of billet of Khuzestan Steel co indicates a problem of liquidity in the market because in the previous weeks when the supply was only by cash, the demand was not more than 70 thousand tons. This is something that IME authorities should pay attention to, if sellers of billet offer with the possibility of delayed payments, the production level would improve for some months.

At IME , also price trend was downward. On Saturday, Arfaa Steel co billet sale price was USD 298 /mt ex-work excluding VAT, but on Wednesday, Chadormalu's product was sold at USD 294/mt excluding VAT.

At the moment steel mills are preparing their tax returns and hot weather has also affected the production level. Therefore, billet price may stay unchanged in the coming days.

Long Products

The average price of debar, which on Saturday was USD 367/mt, fell to USD 362/mt ex-work including 9% VAT on Wednesday. I-beam price was almost stable despite debar price trend.

Average price of Esfahan Steel co I-beam sizes 14 to 18 improved a little from USD 361.8/mt on Saturday to USD 362.1/mt on Wednesday.

Long products market is very sensitive and any decision can affect it, but it is certain that further price cuts seems unlikely. For coming days any especial improvement in prices seems unlikely unless ex-rate change significantly.

Flat Products

HRC 2 mm thickness price on Saturday was USD 489/mt ex-work Isfahan, reaching USD 471/mt by end of the week. Price of Ahwaz Rolling and Pipe co HRC was USD 463/mt by beginning of the week and reached USD 450/mt by end of the week. HRC thickness 3 to 5 mm is facing with severe supply restrictions, but average price for the thickness of 6 to 15 mm, which on Saturday was USD 495/mt reached USD 489/mt on Wednesday.

Oxin co HRP thickness 10- 40 mm was facing with scarce demand, which led to incredible low prices for some cargoes. Average price on Saturday was USD 467/mt then decreased to USD 453 /mt. This price is not profitable at all. Kavian co HRP thickness 12-25 mm also experienced downward trend as price dropped from USD 459/mt to USD 441/mt .

CRC price was downward like other steel products. The average price for 0.40 to 2 mm thickness, which was USD 638/mt on Saturday, reached USD 625/mt on Wednesday. Demand for this product is still limited, and with summer holidays of many of its consumers, demand level will continue declining.

HDG market was also faced with downward trend. Average price of thickness 0.41 to 1.5 mm, which was USD 734 /mt on Saturday, finished the week at USD 713/mt. Regardless of the demand issue, the lower ex-rate led to a decrease in the price of zinc and therefore a decline in HDG price.

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CBI weekly average ex-rate for Steel Products (SANA): 116.631 Rials  / 1USD

  22 July, 2019

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Iran Steel News Bulletin

Jul 22, 2019 10:07
Number of visit : 50

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