Billet- Foreign and domestic offers at the opposite sides
Billet price is declining in Iran, mainly due to sections depressed market.
Foreign suppliers are offering at least USD680/mt cfr Iranian ports, but domestic billet market is moving in the opposite side as no transaction is being done in sections market.
Billet size 150X150 mm was being transacted at small tonnages by USD652/mt in Imam Khomeini port and about USD 662/mt in Anzali port on truck at the end of last week.
During last Iranian month, about 772.000 tones of billet were imported to Iran, but in last 26 days more than 800.000 tones were imported.
Like last quarter of every year, producers are strictly in need of cash, but at the other side it’s winter and constructional activities are at the lowest level.
Long products- No confidence in the market
Last week, Iran sections market was almost unchanged. Imported debar price dropped by around USD10/mt at ports. There is no confidence among market participants and a lot of ambiguities about future sentiment.
Over supply in Tehran Metal Exchange and ports, besides low demand and seasonal factors has made market quiet.
But there is some hopes about the future because of:
1-Rising prices in global markets
2-Transport difficulties
3-Slower pace of falls in domestic prices and more stable prices in TME
At least 40 percent of Iran steel demand is supported by imports market. During last 10 months about 9 millions tones of semi finished and finished steel products were imported to Iran. Now it should be noted that if import levels drop due to any reasons, how it would influence Iran steel market? Many market participants believe that after next 2 months, in the Iranian New Year, prices will surge upward.
During last months, import level of many steel products except billet has decreased due to high prices in global markets.
At the moment foreign billet suppliers offer at USD690/mt cfr and prevailing offer prices in sections import market is USD720-740/mt cfr Southern ports for debar.
Flat products- Prices almost stable
Flat products demand is so weak in Iran and shipping problems have not improved yet. Flat products prices were almost stable last week. HRC 2 mm started the week at USD725/mt, then up by almost USD10/mt, and finished the week at USD717/mt on truck in Anzali including 3 % VAT.
Other flat products prices were unchanged last week as lack of demand is obvious. In import market, there was an offer of CRC to be paid about 4 months later, which confused the market, but generally CRC supply is limited and also the demand is weak.
During last months, global prices were upward so no one interested to import. But Mobarake Steel’s sales policy in TME has increased traders buying not real consumers, so ambiguities about future demand have increased.
If in the Iranian New year which is coming, domestic demand increase, market will face supply shortage.
HRC 2 mm is being offered in import market at USD720/mt cfr Northern Iranian ports, but CRC supplier has not offered yet.
Iran Steel Service Center