Billet

Billet market continued declining during last week in Iran. Domestic billet size 150 mm was around Rials9.6-9.8 million/mt ex-works including 9% VAT. Size 120 mm was also offered by domestic producers at around Rials9million/mt ex-works including 9% VAT.

Downward trend is expected to continue as demand level is limited. Besides, market participants expect Iran billet export increase in coming future as sanctions have eliminated. Turkey and Fareast have shown their interest on buying billet from Iran. But improvement in price is unexpected as long products are downward.

 

Long Products

Long Products continued downward during last week. Khorasan Steel Co debar price dropped by Rials400,000/mt and made whole market trend downward. Debar diameter 14-25 mm decreased from Rials11.85 million/mt to Rials11.6million/mt ex-works including 9% VAT.

I-beam market was also depressed as Esfahan Steel Co I-beam size 14-18 mm dropped by Rials100,000/mt to Rials14.2 million/mt ex-works including 9% VAT.

Angle and channel were also down by Rials200,000/mt.

Parliamentary elections ( on 26th Feb) has made Iran market more quiet, besides year end is near. Therefore any change in market sentiment may occur within next Iranian Year ( begin at 21st March).

 

Flat Products

CIS and Chinese origin HRC 2 mm thickness were stable during last week in Iran and were respectively Rials12.2 million/mt on truck in Anzali port and Rials12 million/mt on truck in Imam Khomeini Port including VAT and custom duties. Market participants expect dumping of Chinese material after Chinese New Year Holidays in Iranian Southern Ports.

In domestic market, Mobarakeh Steel Co HRC 2.5-6 mm thickness was unchanged as demand is low but prices have reached the bottom and supply level is limited. For sizes 6-15 mm prices were up by Rials100,000/mt, but market depression continued. For sizes more than 15 mm, prices were stable and some sellers’ tries for increasing prices were unsuccessful.

CRC market experienced one of its most quiet weeks. Demand is scares and sellers cannot afford to reduce prices more. Year-end sentiment will gradually make market more depressed. Besides, traditionally CRC demand is low within first half of each year, therefore improvement in market situation would be unlikely in coming future. CIS sellers are eager to give discount for February production, April shipment. Ex-rate is also expected to be stable, therefore CRC market would be quiet for a while.

HDG market was also silent and prices were down by Rials300,000/mt.