Over the past week billet price was almost stable in Iran
domestic market and only slightly improved on Wednesday. Its average price on
Saturday was USD 367 /mt until Monday it reached USD 363 /mt but on Wednesday
it returned to USD 378/mt ex-work including 9% VAT. Billet market is full of
ambiguities. On the one hand, the government is trying to keep the base price
in the range of USD 322 /mt at IME. On the other hand, many billet producers are
still not back to work. Billet demand for export is not as normal.
Last week, DRI and pellet were being offered in the market. DRI
base price excluding VAT was up to USD 193/mt and pellet price was heard USD89 -92/mt.
Most traders have stayed back because billet producers are cautious as are
facing difficulties in selling their products, so like the last quarter of last
year, no one is looking to pre-purchase DRI. Some market insiders expect that
With the new export duties for pellets and DRI, DRI supply level will continue
to rise, and its base price will probably fall to USD 179/mt , which of course
depends on the situation of billet market.
Rebar price in Iran domestic market was improving last week,
from USD 422/mt on Saturday to USD 433/mt ex-work including VAT on Wednesday.
The reason for this increase in prices in the first days of the week was higher
level of purchases by traders to reduce their average purchase prices. Higher
ex-rate due to Duabi market closure due to quarantine also affected prices on
The largest export customer of Iran's rebar is Iraq, where
construction projects have declined due to falling oil prices. It is unknown at
this time what will happen to Iran's rebar market if export level decline more.
Most market participants predict that rebar price will need to be adjusted due
to declining demand during the holy month of Ramadan.
I-beam price was also upward due to controlling policy of
market leader Esfahan Steel co. Its price rose from USD 472 /mt to USD 518/mt ex-work
including VAT. Insiders believe that I- beam market still has room for growth.
Price of 2 mm thickness HRC on last Saturday was USD 533/mt ex-work
Esfahan, which reached USD 573/mt by Wednesday. HRC is not being offered by
other mills regularly. Thicknesses of 3 to 15 mm were offered on Saturday at USD
616/mt, but from Sunday onwards, due to the resistance of the sellers, the
price went up and reached USD667/mt by the end of the week. Highest price
increase was related to 8 mm thickness, which increased by USD 72 /mt.
Oxin co HRP thickness 10 -40 mm improved by USD 17 /mt to USD 730/mt by
Wednesday. Its limited supply level has helped prices. Kavian Co HRP is
becoming more stable in the market. Last Saturday, the average price of thickness
15-45 mm was USD 687 /mt, which reached USD 698 /mt by Wednesday.
CRC market was in recession, with few buyers in the market, despite
supply constraints that pushed up prices over the past week. Average price of
thicknesses 0.40 -2 mm on Saturday was USD 911 /mt, which reached USD 937/mt by
Higher HRC price made HDG price also upward and the average price rose
from USD855/mt to USD 908/mt on Wednesday.
CBI weekly average ex-rate for Steel Products
(SANA): Rials 139.657 / 1USD
27 Apr 2020