Iran steel market Trend in Week 35th , 2019

Iran steel market Trend in Week 35th    , 2019


Billet price was down last week in Iran domestic market from an average of USD 334/mt to USD 331/mt ex-work including 9% VAT on Wednesday. The reason for the decline was lack of demand, as Khuzestan steel co billet, which was supplied in 30,000 tonnes at IME, had only 53,000 tonnes demand, which its final sale price saw around 5.5% increase compared with first offered price. Average selling price was USD 303/mt, while previous sale price had been USD 315/mt ex-work excluding VAT.

The most important reason for last week's billet price drop was:

A: lower billet demand due to long products market downturn

B: Lower ex-rate and the impact of policy on steel market.

The current trend is expected to continue as coming weeks are marked by a severe market downturn due to religious Mourning Holidays of Muharram.

It should be also noted that iron ore, scrap and billet prices have fallen sharply outside of Iran too and global billet market is in recession.

Long Products

Long products had been slowly declining over the past week. Average price of debar diameter 8 to 32 mm for all mills, which was USD 381/mt, reached USD 378/mt ex-work including VAT at the end of the week. This was due to a number of issues:

First, market sentiment that suggested policy of wait and see.

Second, the decline in demand due to lower export level. Iran's exports to some neighboring countries have faced challenges. The government is obliged to resolve this dilemma as soon as possible through political consultations, otherwise the steel industry will face serious problems.

Third, the tensions between the steel industry and the Ministry of Industry, Mine and Trade over the current weeks.

Price of I-beam sizes 14-16 and 18 in Isfahan, which was USD 384/mt on Saturday, increased to USD 395/mt ex-work including VAT over the weekend just due to the mill leading policies and stoppage of deliveries. Market will be downward in coming days as problems solve.

Flat Products

2mm thickness HRC was offered in Isfahan on last Saturday at USD 537 - 540 /mt ex-work including 9% VAT while Ahwaz Rolling and Pipe co product was USD 524 /mt. During the week, prices were downward, and by Wednesday reached USD 528 /mt ex-work Isfahan and USD 509/mt ex-work Ahwaz.

The main reason for the decline was just market negative sentiment and he second reason was the rumor about new offers of HRC from Guilan Steel co which was not officially confirmed.

HRC 3 to 15 mm thickness in Isfahan on Saturday were priced at USD 508/mt which reached USD 506 /mt by Wednesday. Lack of demand and market negative expectations were the two main causes of price declines.

Oxin co HRP had a market full of tensions. Average price for thicknesses of 10 to 40 mm, which was USD 481/mt on Saturday, reached USD 477/mt on Wednesday. The mill is trying to maintain its price, but the downward trend in billet price means lower price for slab too. Some sizes with quality of ST52 are in short supply.

CRC market like other flat products saw a downward trend in prices but with a very gentle slope. Its price for the thicknesses of 0.40 to 2 mm declined from USD 656/mt to USD 654/mt ex-work including VAT on Wednesday.

HDG price dropped from an average price of USD 737/mt to USD 728/mt , beside other common negative factors like other products, lower ex-rate also affected HDG price too.


CBI weekly average ex-rate for Steel Products (SANA): Rials 110.718 / 1USD

02 Sep, 2019


Iran Steel News Bulletin

Sep 2, 2019 12:26
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