Billet price dropped around IRR 200,000/t ($2/t) during last week in Iran market. Some limited deals were done under price of IRR 5,700,000 ($570/t) fot Iranian northern port on the Caspian Sea. There is a lack of demand and no buying interest as long products market, especially rebar is silent.
In the last week of May more than 50,000 tones of billet was imported to Iran despite the fact that last imported lots are stocked yet. Suppliers offer for $510/t cfr Iranian northern ports on the Caspian Sea, but Iranian buyers are looking for prices under $500/t cfr.
As Iran steel market is stagnant yet, billet importers prefer to continue wait and watch policy.
Sections continued dropping last week but this time slighter than a few weeks ago. During the week, rebar A3 grade price fell around IRR 100,000/t ($10/t) and IPE price decreased around IRR 150,000 ($15/t). Angle and UNP price dropped like rebar but no buying interest.
It seems that market stagnancy has made prices reach bottom. Last week rebar A3, Turkey origin cfr Iranian southern ports was offered IRR 6,600,000/t ($660/t) at Tehran Mercantile Exchange. Such offers will influence domestic market and damage it.
Last week most rebar suppliers were offering at $540-570 /t cfr Iranian southern ports but they couldn’t find any buyer.
Last week flat products market was so quiet in Iran. Demand was so limited and this lead to price decrease of IRR100, 000/t ($10/t). Price of HRC 2 mm thickness increased around IRR300, 000/t ($30/t) at week opening but came back to IRR 5, 500, 000/t ($550/t) fot Iranian northern port on Sunday. From Monday onward the material’s price improved again and went up to IRR5, 700,000- 5,750,000/t ($570-575/t). But there was no buying interest in the market as pipe and profile has no demand.
HRP 2.5-12 mm thickness had a very silent market. Market price is very close to Mobarakeh Steel exw prices. If this mill decreases its exw prices, market prices would drop quickly as there is no demand in the market.
Cold rolled coil and HDG price fell around IRR150,000/t ( $15) .
Last week, HRC 2 mm thickness CIS origin was offered for $560/t and CRC for $640/t. It’s heard that some traders have ordered CRC.
As flat products market is silent and price of CIS origin CRC has decreased around $100/t, it’s expected that CRC market in Iran face over supply problem in the coming months.
Iran Steel Service Center