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