Billet price was
upward over the past week in Iran domestic market, from USD 351 /mt to USD 355 /mt
ex-work including 9% VAT, while billet sellers were reluctant to offer more on
Wednesday. The only thing that calmed the market was the issue of offering billet
at IME ( Iran Mercantile Exchange) on Wednesday. Base price of Khuzestan steel co
billet increased by about 4% compared to the previous week and reached USD 331/mt
excluding VAT. This trend was predictable and seems to continue for the next
few weeks. Billet price upward trend was affected by the following factors:
1- Higher ex-rate
2- Higher iron ore price
in global markets with closure of one of the largest mines in Brazil
3- Higher demand for
Iranian billet abroad, which has caused export price rise to around USD 380/mt
4- Higher DRI price,
which rose from USD 164-167/mt to USD 175 -178 /mt during last week.
reported, weekly fluctuations will continue in Iran billet market, but general
market trend would be upward.
Rebar price, which
was USD 401/mt on last Saturday, reached
USD 404/mt ex-work including VAT on Wednesday. With higher billet price at IME,
most rebar sellers stopped offering and increased prices by USD 3- 6/mt more on
Thursday. From last week some foreign buyers have returned to Iran rebar market,
and some mills have managed to sign contracts with them, which has raised hopes
among rebar manufacturers. At present, due to problem of DRI supply
restriction, billet production is limited and this has slowed down rebar supply
level too. This trend will create a psychological atmosphere for the rebar
price to rise. As factors affecting billet price are workable for rebar market
too, upward trend is also expected in this section.
Price of I-beam
sizes 14 to 18 was USD 466/mt by beginning of last week, but by Wednesday it
reached USD 470/mt. Changes in the price of billet have not been reflected in
I-beam market yet, but it is also expected to be upward.
Price of 2 mm thick HRC
on last Saturday was USD 546/mt ex-work Esfahan and USD535/mt ex-work Ahwaz,
which reached USD 558/mt in Esfahan by the end of the week, but it was not
available in Ahwaz market. Iran Slab export has begun by late May, and given
the rising trend of ex-rate, HRC price will naturally change.
Kavian Co HRP market
was quiet last week and was faced with a slight drop in price. Its average
price on Saturday, was USD 548/mt and decreased to USD 543/mt by end of the
week. Oxin Co HRP market experienced the same and its price decreased from USD 686/mt
to USD 674/mt ex-work including VAT. All thicknesses were faced with declines.
The fact is that Oxin co HRP price is close to its ceiling, so there is no room
for more price increases in the current situation.
CRC price was
downward. Its average price, which was USD 960/mt on Saturday, decreased to USD
957/mt on Wednesday. Lower HRC price actually made CRC market downward.
HDG market went
through a similar trend like other flat products and decreased from USD 849 /mt
to USD 842/mt. The main reason for lower HDG price was the decrease in HRC
weekly average ex-rate for Steel Products (SANA): Rials 173.897 / 1USD