Sunday billet price in Iran domestic market was USD 488/mt,
which reached USD 517/mt ex-work including
VAT by last Wednesday. There were three factors behind this upward trend:
the stability of ex-rate which was a sign for the strength of billet price.
the shortage of DRI and its severe supply constraints, which along with DRI pricing
methods, have confused all billet manufacturers.
of the above factors, cancellation of billet deals last week at IME signaled a
rise in prices this week and the market is expecting a rise in prices.
Wednesday, price of billet deals at IME increased by about USD 117/mt,
which was eventually canceled again. Base price of DRI has reached about USD 245/mt, while it is accompanied by severe
supply restrictions. The cancellation of billet trades for two consecutive
weeks gives the market a signal that re-rollers are running out of billet, thus
rebar market remains stable.
only factor that may reduce billet price is lower ex-rate, but since the supply
of billet is facing the problem of raw materials, even lower ex-rate cannot
seriously affect the supply and demand of billet.
By last Saturday rebar
price was USD 526/mt ex-work including
VAT, which reached USD 581 /mt by Wednesday. From middle of the week, rebar price
was upward, and all eyes were on billet deal at IME. On Wednesday, price of billet
at IME rose significantly by USD 117/mt.
Some traders, who did not expect this price increase, cautiously offered their cargoes
on Wednesday. With the IME trading and the price increase, sales suddenly
stopped and some mills announced their rebar above USD 584/mt
But billet trades
were canceled on Wednesday afternoon. This was the best signal for those who
believed that with the current trend, price of rebar would go above USD 584 /mt. Some
pessimists even expect much higher prices.
Price of I-beam
basket sizes 14-16-18 was USD 659 /mt on last Saturday, but reached USD 751/mt
by Wednesday. Limited supply at IME and Esfahan Steel co deliveries, which are
constantly fluctuating, were the main reasons of this price fluctuation.
HRC thickness 2 mm was USD 771/mt
ex-work Esfahan on last Saturday and USD 736/mt
ex-work Ahwaz, until Wednesday, when it reached USD 870 /mt in Esfahan and USD 835/mt in Ahwaz. Rising slab prices and supply
shortages were the two main factors behind this price increase.
thickness 3 -15 mm were not being
offered by last Saturday, but on Sunday it was priced at USD 752/mt
until it reached USD 754/mt
ex-work including VAT on Wednesday.
HRP thickness 10-40 mm was USD 762/mt,
which reached USD 811/mt by the end of the
week. Kavian Co HRP thickness of 15 to
25 mm were offered in the market, the average price of which was USD 654/mt on Sunday, but reached USD 705/mt by last Wednesday. Considering that price of billet has practically increased by USD
117/mt in the last two
weeks, it is expected that after rising slab price, HRP price will also
increase. Meanwhile, Oxin and Kavian Co HRP supply is also limited.
thickness 0.40 to 2.5 mm on last Sunday and Monday was not offered clearly. On
Monday, the average price was USD 1158 /mt, which reached USD 1166/mt
ex-work including VAT by Wednesday, regardless of the supply problem, ex-rate
issue also affected this market.
0.50 to 1.5 mm had an average price of USD 1069/mt
on last Sunday, which increased to USD 1114/mt
by end of the week. The increase in price of this product is due to the limited
supply of HRC and its price increase.
weekly average ex-rate for Steel Products (SANA): Rials 171.255 / 1USD
13 July 2020