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Iran steel market Trend in Week 34th   , 2019

Iran steel market Trend in Week 34th   , 2019

Billet

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 slight.

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.

Long Products

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.

Flat Products

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 again.

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CBI weekly average ex-rate for Steel Products (SANA): Rials 112.260 / 1USD

26 Aug, 2019

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Iran Steel News Bulletin

Aug 26, 2019 15:06
Number of visit : 109

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