Billet

Billet price was almost stable during last week in Iran. Billet size 150 mm from domestic leader Khouzestan Steel Co started the week at Rials10.8 million /mt ex-work including 9% VAT and finished the week at Rials10.7 million/mt ex-work including 9% VAT, still with no buyer. Some private mills’ billet declined by Rials200,000/mt and size 120 mm was offered at Rials9.7-10.2 million/mt ex-work including 9% VAT depending on place of delivery.

Production level has declined and cost price of billet is near sale price at the moment. Market has not responded to production cuts due to lack of long products demand.

Within next 20 days, sanctions removal trend will be cleared. When sanctioned are completely stopped, market leaders like Khouzestan Steel Co and Arfaa co can easily export their billet. If market leaders do not increase production capacity, other smaller mills would have a better situation in domestic market.

Long products

Long products market was terribly quiet and unchanged during last week. Debar diameter 14-25 mm was stable at respectively Rials12.95million/mt and Rials14.15million/mt ex-works Ahwaz and Esfahan. I-beam size 18 mm started rising by middle of the week and was up around Rials90,000/mt. Other sizes of I-beam were downward. There were both domestic and imported I-beam available in the market, therefore market leader Esfahan Steel Co couldn’t improve its prices significantly.

Other long products were stable during last week, cold weather has led to lower construction activity. Therefore market is in wait and see policy.

Market participants hope that government infrastructure budget help long products market in coming months. Besides, after sanctions, big mills like Esfahan Steel co can increase export level which will help other small mills to have a better activity in domestic market.

Flat Products

HRC 2 mm thickness was upward during last week to around Rials15.6 million/mt on truck in Anzali including 9% VAT compared with Rials14.9-15 million/mt a week ago. By Wednesday, there was no offer in Anzali port but same material was available in Imam Khomeini port at Rials15-15.1 million/mt on truck including VAT. HRC thickness2.5-12 mm from Mobarakeh Steel Co was in limited supply, therefore price was upward. Kavian co also increased its HRP by Rials100,000/mt and Oxin Co price was stable. Some sizes of Oxin co HRP were in limited supply. Current flat products market trend is strange as prices have increase due to low supply despite lack of demand.

CRC market was in limited supply during last week and this made prices up by Rials500,000-700,000/mt. At the moment Chinese CRC has been offered at USD310/mt cfr , but would not be delivered sooner than next 3 months. Kazakh material is also USD340/mt cfr with 40 days delivery time. But also some last purchased cargoes are on the way to Iran.

Unstable market situation has led to low import level of CRC currently as it declined from 82,000 mt to 71,000 mt and finally 52,000 mt during last 3 months. CRC prices started declining during 23 Sep- 22 Oct and reached its peak by last month ( 23 Oct-21 Nov). By end of last Iranian month ( 23 Oct-21 Nov) prices started rising which will help market balance. Cost price for Kazakh CRC of USD340/mt cfr would be Rials15.5 million/mt on truck in Anzali including 9% VAT. Therefore expecting more downward trend in the market is logical.

HDG market was stable during last week with some sizes in supply shortage.