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Iran steel market Trend in Week 26th , 2019

Billet

As expected, Iran billet market trend was downward during last week. Average price decreased from USD 344/mt to USD336 /mt ex-work including 9% VAT, while sellers were ready for more discounts. Supply of DRI increased last week and buyers resisted against USD 151 /mt of Gol-E-Gohar Mining Co offer price. As previous weeks, declining demand for billet was the main cause of price drops.  Downward ex-rate has also aggravated the current situation.

Generally, it is a month that market participants are very cautious and there is no hope for better billet price in near future. On the other hand, export market is still struggling with structural problems.

Chader Malo Co billet was traded at base price of USD 310/mt ex-work excluding 9% VAT last Sunday. On Wednesday it was traded at USD 299/mt base price, which is USD 11/mt lower. Continuation of this trend is not good for billet producers.

 

Long Products

Due to lack of demand, debar price fell by about 5 percent, from an average price of USD 404 /mt to USD390/mt, while all sellers prefer to sell their inventory, competition was intense. Average price of I-beam size 14- 18 declined from USD 385/mt to USD 379/mt ex-work including 9% VAT.

Weakness of export market these days has challenged long products market severely. Lower prices in Turkey market has also pressured Iran market sentiment.

 

Flat Products

Price of HRC 2 mm thickness experienced around USD 13 /mt decline to reach USD 631.5/mt ex-work Esfahan including 9% VAT and sellers didn’t reject lower asking prices.  

In Ahwaz market, USD 518 /mt was offered which reached USD 500.5 /mt by end of the week, but despite lower supply, demand was scarce. Average price of 3-15 mm HRC of Mobarakeh Steel co on last Saturday was USD 546 /mt, but fell to USD 535mt by Wednesday.

 Oxin co HRP thickness 10 to 40 mm also dropped from USD 519/mt to USD 505/mt ex-work including 9% VAT. Market participants expect Oxin co HRP price decline. While base price of Khuzestan steel co billet at IME was USD 306/mt excluding VAT. Its slab price was USD 376 /mt. This price gap is not reasonable. Since slab demand has dropped due to downward trend of flat products prices, its price should be closer to billet price. Lower slab prices will reduce Oxin, Kavian and Ahwaz Rolling and Pipe co flat products prices.

This downturn will lead to a drop in demand till prices reach the bottom level, so we should not expect any improvement in the market in coming days.

CRC market was almost unchanged at around USD 682 /mt ex-work including VAT for thicknesses of 0.24 - 2.0 mm. Mobarakeh Steel co did not offer CRC at IME during last week which is why most market insiders believe that CRC price has reached the bottom and next offers of the mill at IME would be new market prices.

HDG price fell from USD 833/mt to USD 816/mt, despite the fact that zinc price rose from USD2,445 Exchange to USD 2,629 at LME, but falling exchange rate effected on this product price.

 

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CBI weekly average ex-rate for Steel Products (SANA): 112.871 Rials  / 1USD

01 July, 2019

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Iran Steel News Bulletin

 

۱۰ تیر ۱۳۹۸ ۱۶:۰۹
تعداد بازدید : ۵۲
کد خبر : ۵۱,۰۷۰

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