Billet- domestic prices dropping
Despite higher import offers, domestic billet prices dropped slowly during first week of year 2011 in Iran. Main reasons are low demand and higher import level during last 2 months.
Billet size 150X150 mm started the week at USD687/mt and USD672 /mt in Anzali and Imam Khomeini ports. At the end of the week it was USD15/mt lower at both destinations.
During last 2 weeks, near 400,000 tones of billet has been imported to Iran and it may reach a new record comparing with last Iranian month. Meanwhile, sections market is still very silent.
As Iranian New Year is coming, mills have low margins and need liquidity. Any improvement in next 2 months is unlikely and also there is a lot of ambiguity about market sentiment in next Iranian Year.
Current offer price in billet import market is around USD660- 670/mt cfr Northern or Southern ports by TT payment. Bookings for next months delivery by LC payment is around USD 690/mt cfr Northern ports.
Long products- downward trend won’t stop
Iranian sections market has experienced one of its most silent weeks during last year. Debar price dropped by USD4/mt to reach USD822 /mt at the end of the week. I-beam price increased but just due to low supply not real demand. Angle and UNP prices dropped by USD5/mt but demand is so scarce.
It’s expected that downward trend will continue during next week in sections market. It can also influence transactions in Tehran Mercantile Exchange.
Raw materials prices are rising in global markets but in Iran, stable situation is common. Many mills are looking for cash and they are increasing their supply level.
Debar offer price in import market is USD700-720/mt but there is no buying interest at these levels.
Flat products- lack of demand prevailing the market
Flat products prices have faced some declines during first week of 2011 in Iran. While there was no demand for hot rolled coil 2 mm thick, its price dropped by USD 5/mt and reached USD710/mt in Anzali on truck.
Also price of HRC 3-15 mm tick dropped by USD5/mt. Supply level is limited but at the other hand demand is scarce too.
Just HDG price increased in Iran market by USD30-39/mt, but only due to low import level and limited supply. CRC market was stable as supply and demand levels both dropped and kept prices without change.
In import market, HRC 2 mm offer price is prevailing around USD660/mt cfr Northern ports by TT payment and next month delivery by LC payment is offering around USD690/mt cfr. Khasakhstan origin CRC is offered for USD 790/mt CFR Anzali but at very limited tonnages. Although HDG price is USD 920/mt cfr Northern ports by TT payment but due to current market situation no one is interested in importing flat products.
Iran Steel Service Center