Billet price remained stable last week in
Iran and did not change significantly. On last Saturday it was at an average of
USD 334/mt and decreased to USD 333.5/mt by last Monday but increased to USD 335/mt
ex-work including 9% VAT by Wednesday. This was due to the relative increase in
billet price at Iran Mercantile exchange (IME).
Market participants believe this small
rise was due to market leader Khouzestan Steel co policy as whenever
market is downward, starts supplying with credit payment of 90 days to improve market.
Iran billet market is now at a
A. At one hand, it seems impossible
that billet price reduces more as billet cost price is at the bottom according
to price of DRI, scrap, transport costs, wages and other factors influencing
its price. If DRI price decline, billet
market will be affected severely.
B- On the other hand, prices are
expected to fall.
Lower Price expectations are strong for
several reasons. The government's attempt to lower prices or maintain the current
status would be a main reason.
But the most important factor to keep
in mind is the start of the Holidays in China, which starts this week and
traditionally will lead to a drop in demand for the world's largest steel
consumer. As a result, the likelihood of export decline is very strong too.
price was down slowly last week. Average price of diameters 8 to 32 mm on
Saturday was USD 378/mt, which fell to USD 376/mt ex-work including 9% VAT by
the end of the week. There are several reasons for this downtrend, for example implementation
date of latest new regulations for export of debar has been delayed based on authorities’
policy to control prices. Actually at the moment price of debar has no more
room to decline unless billet price drops. Last year's average price of debar at same time was
USD 427/mt, while the average price reached USD 377/mt ex-work including 9% VAT
ex-work including 9% VAT at the end of last week. This means that despite all
the available factors which pushed cost price to increase, its price is 12%
lower than this time last year.
HRC 2 mm thickness was
USD 505/mt ex-work Isfahan and USD 481/mt ex-work Ahwaz by beginning of last
week. By the end of the week, the price of this product in Isfahan reached USD
500 /mt ex-work including 9% VAT, but it did not change in Ahwaz. Mobarakeh
Steel co price in Isfahan decline as its base offered prices at IME decrease
too. But for Ahwaz market price was stable as its supply level for thickness 2
mm was limited.
HRC price has reached
the bottom. For thickness 3-15 mm, Mobarakeh Steel co product price declined
from USD 502/mt to USD 499/mt ex-work including 9% VAT last Wednesday. As HRC
price at IME declined, some traders started offering at discounts, this trend
will continue in coming days and may make prices more downward.
Oxin co HRP thicknesses
10 to 40mm were priced at an average of USD 483/mt on Saturday but reached USD 481/mt
on Wednesday. This has a very limited profit margin for traders and therefore
their incentive to order this product is not high. However, this is not the
case for ST52 quality HRP because their supply is extremely limited.
Hormozgan Steel co
slab will be offered in coming days, so price fluctuations seem likely.
CRC market was stable
and the week's average price was USD 649/mt while demand was limited. Suppliers
were resisting price declines, but on Wednesday the market saw prices drop by USD
HDG market was stable
and the average price did not change significantly from USD 722.5/mt on
Saturday. Only by Wednesday the average price rose slightly to USD 725/mt ex-work
including 9% VAT as price increased for some thicknesses.
weekly average ex-rate for Steel Products (SANA): Rials 110.076 / 1USD
Steel News Bulletin