Billet price was
upward in Iran domestic market last week. The average price which was USD 452/mt
on Saturday, reached USD 456/mt by Tuesday. The main reason for the increase in
billet price was upward currency rate. While the rise in ex-rate was due to Iran blacklisted
by FATF, billet price should have been reduced by Iran being blacklisted by the
FATF. Because when export level declines, domestic supply would rise and will
affect prices negatively. But market
ignored this fact and just paid attention to upward trend of ex-rate, which led
to higher billet price.
However, DRI price was downward last week and
was heard up to USD 227/mt. As we approach the end of the year in Iran and only
this week or next may truck deliveries be possible, therefore billet production
will decline and would affect DRI demand.
Rebar average price on
last Saturday was USD 497/mt, with the exchange rate rising, it reached USD 522/mt
ex-work including 9% VAT on Monday, while due to the CronaVirus problem and the
FATF blacklisting, export level will reach the bottom, so there is no reason for
prices to be upward. Cronavirus worries made prices downward to around USD 508
/mt by last
Wednesday and this trend may continue.
Like rebar, I- beam price
improved till last Monday, but then declined. The average price of sizes 14 and
16, which was USD 562/mt on Saturday, reached USD 571/mt on Monday, but fell to
USD 549/mt Rials till Wednesday. Market insiders expect the downward trend in long
products prices to continue this week too, as the Cronavirus problem is being
seen more serious than the exchange rate issue, causing trade level to fall.
HRC 2 mm
thickness which was USD 722/mt ex-work including VAT on last Saturday in Esfahan
market, reached USD 745/mt till the
weekend. Market was shocked by the increase in price of Mobarakeh Steel co at
IME by USD 76/mt. It affected market trend as thicknesses 3 to 15 mm increased
from USD 834/mt to USD 875 /mt on Tuesday but dropped to USD 865/mt by end of
the week. Oxin co HRP of 12 to 35mm thickness were offered at USD 831/mt on
Saturday, limited supply level pushed prices up and reached USD 894 /mt till
Tuesday, but on Wednesday was around USD 886/mt. Sellers are worried and buyers
have stayed back.
market was faced with high tensions. Earlier in the week, there was no offer until
Monday when Mobarakeh Steel co appeared at IME with high prices but its deal
was canceled. Any way it showed the way and average price in retail market reached
USD 1264/mt but by Wednesday get back to around USD 1146/mt ex-work including
VAT. Market participants are worried and can not predict future market trend.
market had a similar condition like CRC, and the sale of Mobarkeh Steel co at base
price of USD 970 /mt ex-work excluding VAT at IME was canceled, but had a
psychological impact on retail market.
weekly average ex-rate for Steel Products (SANA): Rials 134,298 / 1USD
02 Mar 2020