of billet was USD 521 /mt ex-work including 9% VAT on last Saturday, but the
market was waiting for trading at IME on Tuesday. On Monday, with the hope of
increasing price at IME, average market price reached USD 551/mt. On Tuesday,
109,000 tons of billet was offered at IME, for which 249,000 tons of demand was
registered. All buyers were required to pay 50% of the amount in advance, while
previously could enter the competition with just 10% down payment. Despite this
new regulation, the entire product offer was sold.
Reasons for the
increase in price of billet last week were:
1- Increasing base
price at IME
of ex-rate upward trend
transactions in the last two weeks and creating anxiety in the market
4- Higher long
and export demand would be two factors affecting market in coming days. Actually
in the current situation, billet price has reached its maximum level and has
crossed the export price limit, so market insiders are in a waiting state.
believes that price level of long products has reached its peak and cheap
inventories are controlling the market. On the other hand, the amount of
capital required to work in the steel market has become very high, which is not
in line with its efficiency. Due to the low return on capital, prices are not
likely to rise as in previous weeks, but the second view believes that there is
a reason for the price increase due to the lack of DRI and scrap. The outcome
of both looks depends on time. The fact is that the market needs one to two
weeks to test itself.
Average price of rebar on Saturday was USD 562 /mt
ex-work including 9% VAT in Iran domestic market, which reached USD 601/mt by
Wednesday. The whole market was waiting for billet trading on last Tuesday at
IME. With the methods used in the Iran Mercantile exchange to pay 50% down
payment, it gave the retail market a signal that the policy of supply
restriction and control is still in place. Despite this limitation, 42768 tons
of supply was faced with 72424 tons of demand at IME. At the same time
with IME supply, two mills offered their
product below USD 552/mt. This affected
the retail market at the same time as IME trading.
I-beam market had an upward trend. The reason was lack
of supply of size 14 from Esfahan Steel co and Size 16 from another market
leader in Ahwaz. Therefore, the average price of I-beam size 16 and 18 in Esfahan,
which was USD 686 /mt on Saturday, reached USD 728/mt ex-work including VAT by last
HRC 2 mm thickness started the week with
price of USD 828/mt ex-work Esfahan including 9% VAT and in Ahwaz it was USD 778
/mt, which until Wednesday it reached USD 971/mt in Esfahan and USD 883/mt
ex-work Ahwaz. Mobarakeh Steel co HRC thickness 4-15 mm also rose from USD751/mt
ex-work Esfahan to USD825/mt by end of the week.
Oxin Co HRP thickness 10 to 40 mm were
priced at USD 807 /mt on last Saturday, but increased to USD 895 /mt by
Wednesday. Kavian Co HRP had a more regular supply. The average price of its 12
to 25 mm thickness HRP on Saturday was USD 704 /mt, which reached USD 775 /mt
by Wednesday. As mentioned in last week's reports, it is still possible for
sheet prices to rise because it is rooted in slab price trend.
CRC thickness 0.40 to 2.5 mm was priced
at USD 1139 /mt on last Saturday, which increased to USD 1250 /mt ex-work
including VAT by Wednesday. With the increase in the price of HRC, HDG market also
faced an increase in price, and from USD 1109 /mt on Saturday for thicknesses
of 0.50 to 1.5 mm rose to USD 1258 /mt
on Wednesday, Higher exchange rate was also effective.
weekly average ex-rate for Steel Products (SANA): Rials 181.205 / 1USD