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Iran Steel Market Trend Iran Steel Market Trend (Visit Count : 2202)

Billet

Billet market was unchanged during last week in Iran due to two main reasons:

1- Scrap supply level have declined significantly in Iran. Lower re buildings due to economic sadness, has lowered scrap production. Besides, lower industrial productions have also affected scrap supply level.

2- Billet price has reached the bottom, and there is no more space for lower prices. Therefore, billet production has declined. Limited billet supply level has been obvious during last 2 weeks.

Billet size 150 mm was priced at Rials10.15-10.40 million/mt ex-work including 9% VAT depending on place of delivery, but offered at very low level. Khouzestan Steel co billet was priced at Rials10.3 million/mt ex-work including 9% VAT. Billet size 120 mm was offered at limited tonnage at Rials9.6-10 million/mt ex-work including 9% VAT.

Based on last agreements, HBI should be priced half of Khouzestan Steel Co billet sale price at IME. If billet price at IME declines, HBI price should decline, which will make iron ore concentrate price down too.  But price of HBI and concentrate won’t decline easily due to resistance of state owned producers.

 

Long Products

Long products prices were down by a limited margin during last week. As billet price downward trend has stopped and production level is low, long products market is facing with minimum competition. Debar price of Khorasan Steel co dropped by Rials100,000/mt Rials12 million/mt including 9% VAT in spot market. Esfahan Steel Co products prices were mostly stable. Just angle and channel price decreased by up to Rials400,000/mt for some sizes. This decline was not unlikely but angle and channel price is also reaching bottom.

Demand is low and production level is declining. This situation will not affect state owned mills, but private mills are seriously worried about their future.

 

Flat Products

HRC 2 mm thickness is near the bottom. Its price at Anzali port was Rials13.2 million/mt on truck including 9% VAT and at Imam Khomeini port it was Rials12.5million/mt for high tonnage parcels. New Year Holidays in supplier countries made prices stable in import market and there was no interest in buying.  Lack of demand in pipe and profile market, has affected HRC market. 2.5-6 mm thickness HRC was in limited supply. Mobarakeh Steel co has not changed its price at IME and in spot market prices have reached bottom. Though, there is no interest in investment in this market. HRP price was down by Rials400,000-500,000/mt. Market was quiet and lower prices can not compensate lack of demand.

CRC price dropped by Rials500,000/mt by start of the week but lower supply level made it up by Rials300,000/mt  at middle of the week. Import market has been quiet too. HDG market was downward and depressed.



Date: 1/9/2016
Source : www.irsteel.com
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