By last Saturday billet average price was USD 353 /mt ex-work
including 9% VAT in Iran domestic market, which reached USD 356/mt by Tuesday. Billet
transactions at IME were canceled on last Sunday when prices had risen. The
cancellation of transactions at IME is a signal to retail steel market to be prepared
for price increases, because the cancellation of transactions will delay the
delivery of billet to re-rollers.
In the current
situation, DRI is facing with supply constraints. With the start of repairs and
limited electricity supply in summer time, DRI production level will decrease. Last
week, minimum price of DRI base price was USD 173/mt, but with the current market
trend, it will increase significantly, which will be transferred to billet
Two other factors which made billet price rise were higher
ex-rate and higher billet export price.
Average price of
rebar on Saturday was USD 394/mt, which reached USD 400/mt ex-work including 9%
VAT by Tuesday last week. As billet supply limitation continues, it is expected
that rebar price will improve further.
Price of I-beam size 14 to 18, which was USD 474/mt
ex-work Esfahan on last Saturday, reached USD 479/mt by Tuesday. Size 20 and
above were faced with supply constraints. Actually Esfahan Steel co is
carefully controlling I-beam supply level and its price.
Export price of
rebar is USD 400 – 410/ mt fob Iranian ports. As exchange rate rises, rebar
export price will naturally rise in the market, while the market is facing with
billet supply limitation.
HRC 2 mm thickness was
USD 534/mt ex-work Esfahan on last Saturday and USD 512/mt in Ahwaz market,
which reached USD 551/mt in Esfahan and USD 523/mt in Ahwaz by end of the week.
Mobarakeh Steel co HRC thickness 3 to 15 mm was not offered by beginning of
last week and the market was waiting for IME ( Iran Mercantile Exchange), but
the average price, which was USD 528/mt, reached USD 534/mt by Tuesday. Unlike
Mobarakeh Co, Oxin co HRP was faced with a limited price reduction from USD 647/mt
on Saturday to USD 639/mt on Tuesday. Kavian co HRP was stable.
CRC which was priced
at USD 923/mt ex-work including VAT on last Saturday, reached USD 932 /mt by
Tuesday. As CRC price didn’t change at IME, even though it was a matching
contract, made market calm.
HDG price increased.
Limited supply of Seven Diamond Co affected this price increase, so the average
price increased from USD 807 /mt to USD 859/mt on Tuesday. Higher ex-rate and its
influence on Zinc price also affected this improvement.
weekly average ex-rate for Steel Products (SANA): Rials 181.503 / 1USD