Last week billet
price in Iran market experienced some fluctuations, falling from an average of USD
324 /mt ex-work including 9% VAT on Saturday to USD 321/mt on Monday and back
to USD 325/mt ex-work including 9% VAT till Wednesday. At the moment Iran
billet market is confused and supply level has been limited.
Global markets are
also on summer vacations, while steel production in Iran has increased. Billet
export along with its production have increased over the past three months. The
volume of exports is not exactly clear, but production in the first quarter of
current Iranian year (21 March-21 June) was up by 17 percent compared to same
time last year. High profit margin of steel mills due to low DRI price compared
to billet sale price has increased production level.
Higher export level
of market leaders has satisfied lack of demand in domestic market. But the question
is that export improvement will continue or not?
Debar price passed a slow week in Iran, with a very limited price drop. At
the end of the week, average price was USD 369/mt ex-work including 9% VAT, compared with USD 371 /mt on Saturday. Price of long products especially debar,
have been rising since end March (beginning of current Iranian Year), due to delayed
demand of end of last year. For this reason, first quarter debar production was
up 21 percent, but the drop in prices that started in June and will continue,
would change second-quarter production figures.
Export offers of Iranian debar was heard by some mills at USD 335/mt
ex-work. It should be also noted that August is summer holiday time all over
the world, especially in the neighboring countries of Iran, therefore long
products demand is low.
With weather condition improving and after holidays, market insiders expect
better sentiment in neighboring countries markets.
I-beam followed similar trend like debar, with the average price of sizes 14-18
from Isfahan Steel co, rose from USD 370 /mt on Saturday, to USD 373/mt on
Two mm thickness HRC
from Mobarakeh Steel co was traded on Saturday in Isfahan at USD 502 -504/mt ex-work
including 9% VAT and reached USD 506 /mt by the weekend. Ahwaz product was USD 480/mt
on Saturday but increased to USD 490/mt ex-work including 9% VAT by the
3 to 15 mm thickness
HRC price declined from USD 503/mt on Saturday to USD 501/mt ex-work including
9% VAT by the end of the week.
In the meantime,
Oxin co HRP had a better market. Average price of 10 to 40 mm thickness HRP of
the mill which was USD 461/mt on Saturday, decreased to USD 453/mt ex-work
including 9% VAT on Wednesday. Kavian co HRP also dropped to about USD 454/mt
for the thickness of 12 to 25 mm from USD 455/mt in the beginning of the week.
HRC market is very
confused at the moment due to possible lack of slab as its production level
declined by 8% during previous three months to around 240,000 tones. Besides
currently its export level had improved significantly. Therefore, HRC market is
worried about possible lack of raw materials.
CRC market was stable
during last week in Iran with the average price of thicknesses 0.40 to 2 mm declining
from USD 639/mt to USD 638/mt ex-work including 9% VAT over the weekend. CRC production
level increased by 15% in the first quarter of this Iranian year compared to
the same quarter last year, but higher export level helped market resisting
against lower domestic demand.
HDG price dropped to
USD 747/mt from USD 751/mt ex-work including 9% VAT on Saturday. Lower ex-rate
and its impact on zinc price also affected HDG price.
weekly average ex-rate for Steel Products (SANA): 114.575 Rials / 1USD
Steel News Bulletin