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Iran Steel Market Trend Iran Steel Market Trend (Visit Count : 1792)

Billet price experienced serious declines during last week in Iran. By last Sunday imported billet price dropped by Rials500,000/mt compared to previous week and reached Rials14.9 million/mt on truck in Anzali port including 9% VAT.

Khouzestan Steel co offered its billet at IME on Monday and this made market downward trend continue till end of the week.

By end of the week, domestic billet size 125 mm, length 6m which is being used for producing debar quality A2, angle and channel was Rials13.8 million/mt ex-work including 9% VAT and size 150 mm reached Rials 14.6-14.7 million/mt ex-work including 9% VAT.

Billet downward trend has also made scrap price cheaper. Therefore scrap suppliers concerning about lower prices, have increased supply level.

Besides, cheap purchased debar parcels are being offered in the market and has led to lower billet demand too.

Market participants expect stable trend for billet market in near future.



Long Products

Long products were downward during week 17th . Debar size 14-25 mm average price declined from Rials17.317 million/mt to Rials16.250million/mt ex-work including 9% VAT. I-beam size 14-18 mm average price also dropped from Rials16.967 million/mt to Rials16.300million/mt ex-work including 9% VAT. Other long products like angle and channel were also downward.

There are some reasons behind this downward trend including:

1- Currently, prices had increased largely, therefore buyers were in wait and see policy and this downward trend was expected.

2- Cheap last purchased debar parcels were available in the market and made market trend downward.

3- Current Iranian Year government budget has not been approved yet, therefore state projects are not active and had no real demand during one and a half month ago. All transactions in the market were just speculations by traders.

Market participants expect debar price reach Rials15.2-16 million/mt ex-work including 9% VAT based on current billet market trend. This price range is yet 20% higher than minimum price of last year.


Flat Products

Imported HRC 2 mm thickness was stable during last week in Iranian ports. It was Rials19.35million/mt on truck in Anzali port and Rials18.8million/mt on truck in Imam Khomeini port including 9% VAT and custom duties. Some market participants expect its price reach Rials21million/mt in near future as last purchased cargoes were form China at USD480/mt cfr. Some others believe current price of HRC 2 mm thickness is the highest as pipe and profile market won’t accept higher price.

Besides, Iranian government is trying to hold HRC price at low levels. Therefore state owned Mobarakeh Steel Co offered HRC class C by last Monday at IME at base price of Rials14.541million/mt which would be Rials15.850million/mt including 9%VAT. There is a large gap between domestic and import prices, this will help market stabilize.

HRC thickness 20 mm or higher was up by Rials500,000/mt during last week in Iran. Oxin co and Kavian Co HRP price rose by Rials200,000-700,000/mt.

CRC market experienced up and downs for some sizes as dropped by Rials500,000/mt by beginning of the week and get back to first prices again. On Monday Mobarakeh Steel Co CRC base price at IME was Rials17.619million/mt excluding VAT and made market calm. At the moment domestic CRC finished price is cheaper than import prices. During last Iranian month around 35,284 tones of imported CRC has been arrived which were for the orders of 2 or 3 months bofore. The significant gap between import and domestic market has made import market quiet during last 2 months.

HDG market was stable and quiet, experienced around Rials300,000/mt decline for some sizes till end of the week.  

Date: 5/1/2016
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