Billet price in Iran domestic market, which
had an average price of USD 344/mt ex-work including 9% VAT on last Saturday,
reached USD 347/mt by Wednesday. Market expectations for price improvements and
also rising prices at IME made market upward.
Despite the fact that supply of DRI is
not limited like last year, but its price still remains in the range of USD 179/mt.
Because, first of all, production costs have increased, and secondly, government's
quota policy, is not allowing competition in DRI market.
Rebar diameter 8 to 32 mm on last Saturday was USD 397/mt,
which increased to USD 404 /mt on Wednesday, while market is facing significant
lack of demand, pricing policies have made market confused and real price level
is not clear.
Although it was
thought that the maximum base price of rebar at IME would be USD 332 /mt, but last
week it was seen up to USD 343/mt ex-work excluding VAT, while the selling
price of rebar last week was below USD 319 /mt in IME.
I-beam market had the same situation. The market was
expecting that authorities won’t let I-beam be sold at IME higher than USD 345/mt,
while on last Tuesday it was traded at USD 351/mt. The average price of I- beam
sizes 14 to 18 in Isfahan was USD 460/mt, which increased to USD 471 /mt by
Wednesday. This increase is due to the same price fluctuations at IME, while long
products market is in recession and buyers are reluctant to enter the market.
Price of 2 mm thickness HRC on last Saturday was USD 521/mt in Esfahan
and USD 492/mt ex-work including VAT in Ahwaz. As HRC price at IME increased,
retail market also improved but as the deal was canceled at IME, market was
full of confusions again. The average price of HRC 3 to 15 mm thickness on
Saturday was USD 566 /mt, which reached USD 591/mt on Tuesday, but dropped on
Wednesday and returned to USD 574/mt.
Oxin co HRP market was quiet. But despite that depression, prices
improved from USD 661/mt to USD 697/mt. The same was seen for Kavian co HRP
with thickness of 15 to 30 mm, which increased from USD 599/mt to USD 613/mt
ex-work including VAT.
CRC market was faced with an increase in price due to the limited
supply of Mobarakeh Steel co. Its average price rose from USD 878/mt to USD 904/mt
ex-work including VAT by end of the week. This upward trend was also seen in
HDG market as its price improved from USD 798/mt to USD 819/mt, which was due
to the increase in HRC price.
CBI weekly average ex-rate for Steel Products
(SANA): Rials 156.500 / 1USD
11 May 2020