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Iran steel market Trend in Week 30th , 2019

Iran steel market Trend in Week 30th  , 2019

Billet

Billet price improved slightly last week, reaching an average of USD 327/mt ex-work including 9% VAT by the weekend from USD 315/mt by beginning of the week. The main reason for the increase was upward exchange rate, which began to rise from last Sunday. On Monday, Arfaa Steel co sold its billet at IME at USD 302 /mt. The mill last sale 10 days before was USD 298/mt.  Rumors of billet price hike were heard at IME as profit margins of the producers had fallen sharply, but the Ministry of Industry, mine and trade announced new regulations about billet purchase which will make Iran billet market participants limited if being performed. But generally, market participants believed that decisions like this which has been chosen last year too won't be practical and won't affect our market much.

Long Products

Average price of debar, which was USD 365/mt on Saturday, reached USD 371/mt ex-work including 9% VAT on Wednesday, and I-beam price increased from USD 365 /mt to USD 373 /mt ex-work including 9% VAT.

Long products market is very sensitive at the moment due to its very small depth and shrinkage. Because of the fact that the ratio of production to installed capacity is low and is about 40% lower overall, so any increase in the price, will rise supply level and again leads to a decrease in price.

Long products production capacity is high and we have to increase export level for market improvement. Iranian billet was offered at $ 390 /mt FOB a week ago, but rebar was $ 370 /mt at the Iranian borders.

However, cost of rebar worldwide is at least $ 12 to $ 15 higher than billet. Iranian authorities know this, but continues to issue inadequate instructions. Market insiders believe that in this condition expanding export market would help domestic market too.

Flat Products

Price of 2mm thickness HRC was announced in Isfahan on Saturday at USD 486/mt and at USD 451 /mt ex-work in Ahwaz, but since Saturday sellers resisted against any lose and the market improved until Wednesday when HRC in Isfahan reached USD 495/mt and in Ahwaz reached USD 477/mt.

Domestic supply of slab is limited due to higher export of past few months but if the export level decline due to sanctions, prices will naturally fall again.

Mobarakeh Steel co HRC thickness 3 to 15 mm faced a rise in price from USD 494 /mt to USD 501/mt. Unlike previous weeks, thicknesses below 6mm were offered and this helped price stability.

Oxin and Kavian co HRP improved slightly. Average price of Oxin HRP rose from USD 456/mt  to USD 461/mt. Kavian co product, 12 to 25 mm thickness, rose from USD 450/mt to USD 455/mt. The reason for the price increase was resistance of sellers, while demand remained unchanged, and the possibility of a decline was not unlikely.

CRC average price of thickness 0.40 mm to 2 mm rose from USD 632/mt to USD 635/mt. It is not yet CRC consumption season, but in the second half of year the effect of demand level on prices will be more clear.

HDG, which was priced at USD 718/mt last Saturday, reached USD 731/mt on Wednesday. Higher ex-rate has a serious impact on improving price of this product.

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CBI weekly average ex-rate for Steel Products (SANA): 115.223 Rials  / 1USD

  28 July, 2019

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Iran Steel News Bulletin

Jul 28, 2019 10:09
Number of visit : 67

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