Average price of billet was USD 380/mt
ex-work including 9% VAT by last Saturday, which reached USD 400/mt by Wednesday.
The reason behind upward trend was primarily higher ex-rate but inflationary
expectations also made billet price up. Billet supply level is not limited
despite closure of some mills. On the other hand, DRI price has stayed in the
range of USD 195/mt and there is no sign of improvement for it. At the same
time, pellet price also has not changed. Therefore, higher billet price was
only due to higher rebar price, which is also based on inflationary expectations
itself. Actually steel market tendency to rise is mostly due to high amount of money
in circulation which is continuously upward.
Rebar price was upward during last week in Iran. Its average
price was USD 443/mt on Saturday, but it jumped on Wednesday to USD 455/mt
ex-work including VAT. The biggest price rise was seen on Wednesday, driven by
rising currency price in open market. Market insiders believe based on current
HRC price, rebar should be at least USD 488/mt.
I-beam price was upward like rebar, but it showed its biggest
jump on Wednesday, which was mostly due to higher ex-rate in open market.
Despite rising prices, trading volume was very limited last week. The reason was
clearly lack of liquidity.
HRC 2 mm thickness started the week at USD 90,000/mt ex-work Esfahan
and USD 585/mt ex-work Ahwaz, which increased to USD 679/mt in Esfahan and USD 641
/mt in Ahwaz by end of the week. Thicknesses of 3 to 15 mm were priced at an
average of USD 635/mt on last Saturday, which reached USD 670/mt by Wednesday.
Oxin Co HRP continued to rise, influenced by production policies and
mills’ selling prices. Its average price rose from USD 752/mt to USD 807/mt on
Wednesday ex-work including VAT.
Kavian co HRP was faced with supply constraints. Only thicknesses of
15 to 25 mm were offered, which improved from USD 688/mt to USD 710/mt by end
of the week.
CRC thickness 0.40 to 2.5 mm was USD 985/mt on Saturday, but reached USD
1085/mt by Monday and no one was a seller from Monday onwards.
HDG market had an upward trend along with HRC and increased from the
average price of USD 924/mt to USD 976/mt on Wednesday. Despite rising prices,
market remained silent.
CBI weekly average ex-rate for Steel Products
(SANA): Rials 143.551 / 1USD
18 May 2020