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
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.
Despite lower prices in global markets, export is still attractive for Iranian mills.
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.
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
price by the last week remained almost constant. There are two reasons for the
price stability of debar:
its price has reached the bottom due to billet price trend and there is no
possibility of further reduction.
most mills do not have enough inventory level. What they produce is for orders
they receive, whether from export or domestic market.
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.
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
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:
slab supply restriction by Khuzestan and Hormozgan Steel co
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
HRP 12 to 25mm thickness was by average USD 483/mt on Saturday, which did not
change until Wednesday.
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.
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.
weekly average ex-rate for Steel Products (SANA): Rials 109.766 / 1USD