Billet price was almost stable during last week in Iran. Average
price just changed a little from USD 330/mt to USD 329/mt ex-work including 9%
VAT. There is an ambiguity in billet market at the moment, on one hand, lower
consumption due to religious holidays, made demand for billet declining and
some insiders have been expecting a downward trend. But on the other hand, as neighboring
countries market would be active as Holidays have ended, demand for Iranian billet
will increase and prices will normally rise. This is if the price of DRI and
scrap stay unchanged, otherwise billet price rise will be short-term and
Iron ore prices in China have fallen to a five-month low, which
will reduce iron ore exporters' profit margins. On the other hand, government
efforts to control prices will lead to lower raw material prices.
Average price of debar, which was USD 377/mt
last Saturday, dropped to USD 376 /mt on Wednesday, which was almost unchanged
during the week due to market closure for Holidays. Billet supply, on the other
hand, had lowered the outlook for debar market every day. It has been said
recently by authorities that according to new regulations any mill that wants
to export, has to supply its product at IME ( Iran Mercantile Exchange, so it
should be expected that exports of debar will be reduced as many steel mills
are not eligible at IME but are exporting at the moment. This can quickly
affect the domestic market and cause a sharp drop in prices, with a consequent
impact on the entire steel market chain.
Price of I-beam also declined
slightly over the past week, with the average price of sizes 14, 16 and 18 in
Isfahan falling from USD 379/mt to USD 377/mt ex-work including 9% VAT.
HRC 2 mm thickness declined during last
week in Iran from USD 60500 /mt ex-work Isfahan to USD 534/mt by the weekend.
In Ahwaz, on Saturday it was USD 530/mt and decreased to USD 521/mt ex-work
including VAT by the weekend. Market closures for Holidays made prices decline.
HRC 3 to 15mm thickness of Mobarkeh Steel
co in Isfahan, which was priced at USD 503/mt on Saturday, fell to USD 501/mt
by the weekend. Oxin co HRP 10 to 40mm thickness products were traded at an
average of USD 473/mt on Saturday, which fell to USD 472/mt ex-work including
9% VAT by end of the week.
CRC thickness 0.40-2 mm which was USD 647/mt
on Saturday, was almost unchanged by end of the week. Its price may go up as demand
will increases by consumer mills becoming more active.
HDG price continued to fall under the
pressure of falling ex-rate, down from USD 737/mt for 0.40 to 1.5 mm
thicknesses on Saturday to USD 728/mt on Wednesday. Downward HRC price also
affected HDG price decline.
Some market insiders believe that Iran
domestic and export market will be active in coming days, as there is only one
week left until the beginning of Month of Muharram and market will become quiet
weekly average ex-rate for Steel Products (SANA): Rials 112.260 / 1USD
Steel News Bulletin