Billet price in Iran
domestic market remained almost stable despite its ups and downs during last
week. On Saturday, its average price was USD 474.3 /mt and on Wednesday USD 474/mt
ex-work including 9% VAT, while its base price at IME ( Iran Mercantile
Exchange) increased compared to previous week. The reason behind the increase
at IME was higher exchange rate, while the final purchased base price was USD 414/mt
by average, and DRI base price was offered within USD 226 - 230 /mt, depending
on the place of delivery which was almost same as a week ago.
News about falling
iron ore and billet price in global markets could lower the base price of
billet at IME, in which case long products market will be faced with a severe
Average price of rebar, which was USD 516/mt
on last Saturday, reached USD 525 /mt until Wednesday, while many mills were
offering discounts on sales because the market was quiet. Higher rebar price was
due to the increase in base price of billet and rebar at IME. Some market
participants believe that rebar price is at the bottom level and will not
decrease more. Others believe that recent upward trend is due to higher ex-rate,
and if ex-rate decline, rebar price will be downward.
I-beam size 14 to 18 on last Saturday was
USD 585/mt, but by end of the week it reached USD 591 /mt ex-work Esfahan. Esfahan
Steel co managed to sell its I-beam on IME at a higher price than previous
week, while its delivery is in January. This means that I-beam price will
increase in the coming months.
HRC 2 mm thickness started the week at USD 914 /mt
ex-work Esfahan, which reached USD 902/mt by end of the week. Efforts of
profile producers to offer at the end of December at a price of about USD715/mt
instead of USD 834 /mt was part of the reason behind lower HRC price.
Average price of Mobarakeh Steel co HRC 3 to 15
mm thickness, on last Saturday was USD 682/mt, which reached USD 687 /mt by end
of the week.
Oxin Co HRP thickness 10-40 mm were priced at USD
660/mt on Saturday, which reached USD 665/mt by end of the week.
At the moment HRC demand is very limited in
Iran. On the other hand, its price in warehouses in Tehran is cheaper than in
Ahwaz market. This means that Tehran warehouses are not empty and cheap purchases
are not yet sold while slab price has risen at IME. Lack of demand is a problem
that can be seen in all steel products markets at the moment. If this situation
continues for a month, it will definitely affect billet and DRI price in Iran
CRC was priced at USD 900 /mt on last Saturday,
but reached USD 1245/mt ex-work including VAT by Wednesday. Higher ex-rate made
HDG price was also upward and increased from an
average of USD 1150 /mt to USD 1224/mt. Regardless of ex- rate changes, which is
the main cause of price increase, the issue of controlling Esfahan warehouses
has affected HDG price.
average ex-rate for Steel Products (SANA): Rials 251,704/ 1USD