Iran steel market Trend in Week 38th , 2019

Iran steel market Trend in Week 38th     , 2019


Billet price remained almost flat last week, reaching USD 335/mt from USD 332/mt ex-work including 9% VAT. Three factors are influencing Iran billet market at the moment:

A. Lower supply level of billet as its price is not matched with finished product prices, as a result re-rollers have declined production level and billet production level has declined over the past three months.

B. Despite lower prices in global markets, export is still attractive for Iranian mills.

C. The market was more confused with the approaching deadline set by the Ministry of Industry, mine and commerce as any mill eager to export should offer at IME ( Iran Mercantile Exchange) too.

Billet price traded on IME by last week of September last year was USD 312/mt without VAT which reached USD 317/mt this year. In fact, the price of billet at the end of September this year is close to the price of last year while the price of pellet , DRI, transportation fees, wages, water, electricity, gas all increased.

Long Products

Debar price by the last week remained almost constant. There are two reasons for the price stability of debar:

First, its price has reached the bottom due to billet price trend and there is no possibility of further reduction.

Second, most mills do not have enough inventory level. What they produce is for orders they receive, whether from export or domestic market.

It should be kept in mind that the market started working after around 10-day holiday last week, and then it was end of the month, with activity usually slowing in the final weeks of the month.

I-beam price was on the rise and the average price of I- beam sizes 14, 16 and 18, which was USD 402/mt on Saturday, reached USD 411 /mt on last Wednesday, as a result of a decrease in the supply of Isfahan Steel co. There are rumors that this supply restriction will continue, so traders are cautious about selling their product.

Flat Products

HRC 2 mm thickness was traded in Isfahan at USD 509/mt by beginning of the week, reaching USD 501/mt by end of the week. The same commodity was reported in Ahwaz on Saturday at USD 492/mt, which fell to USD 483/mt ex-work including VAT by end of the week. There was a slight drop for thickness 3-15 mm due to low demand and their average price decreased from USD 505/mt to USD 503/mt. Oxin co HRP 10 to 40 mm thickness, which was priced at USD 484/mt on Saturday, reached 485/mt on Wednesday. This was due to the increase in the price of thicknesses below 15 mm, which were limited in supply. ST52 quality HRP from Oxin co is facing severe upside constraints. Two main causes of this shortage is:

First, slab supply restriction by Khuzestan and Hormozgan Steel co

The second is a reduction in production by the mill, which has resulted in the price difference of the ST52 quality with the ST37 sometimes reaching USD 182-319/mt. Apparently there is no hope of changing this situation over the next one or two weeks.

Kavian HRP 12 to 25mm thickness was by average USD 483/mt on Saturday, which did not change until Wednesday.

CRC thickness of 0.40 to 2 mm fell sharply from USD 655/mt  to USD 651/mt, despite limited supply of many thicknesses, but the downturn in demand does not allow the market to improve.

0.40 to 1.5 mm thickness HDG, which was priced at USD 734 /mt on Saturday, reached USD 724/mt by end of the week as lower HRC price affected HDG market.


CBI weekly average ex-rate for Steel Products (SANA): Rials 109.766 / 1USD

23 Sep, 2019


Iran Steel News Bulletin

Sep 23, 2019 15:04
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