Billet

Billet market was downward during last week in Iran. Domestic billet size 150 mm decreased from Rials13.5-13.6 million/mt to Rials13.2 million/mt ex-work including 9% VAT. Billet size 125 mm also dropped from Rials13.4 million/mt to Rials13 million/mt ex-work including 9% VAT. Khouzestan Steel co offered 80,000 mt of its billet size 150 at IME ( Iran Mercantile Exchange) on Wednesday at base price of Rials12.5 million/mt excluding VAT but sold just 24,000 mt of it. Khouzestan steel co billet was not being offered in retail market during last month in Iran. This time 2 days before offering at IME, it was available at Rials13.2 million/mt ex-work including VAT in retail market. Khorasan Steel co billet was also available at Rials13.2 million/mt ex-work including VAT.

It seems that billet base price at IME won’t be lower than Rials12 million/mt. If it decline more, will affect DRI, iron ore and pellet price too. If government let prices decline, buyers will go back and market situation will became worse. Raw material producers would be faced with many problems then.

 

Long products

Long products were stable during last week in Iran. Average price of debar diameter 14-25 mm in Esfahan was stable at Rials15.42 million/mt including 9% VAT. Some sellers tried increasing prices but were not successful as market fundamentals were week.

I-beam size 14-18 mm changed from Rials15.217million/mt to Rials15.1 million/mt ex-work including VAT in Esfahan. Angle and channel were also unchanged.

Reasons behind long products stable market include lower production rate and stable billet market.

 Real demand has bottomed but supply level has reduced too. Mills are stocking raw materials at their warehouses for just a week. Therefore will use lower money and would lose less if prices drop. Besides, billet market is almost stable and long producers are confident that raw material is available any time they need. This is a logical policy especially when global prices are downward too.

 

Flat Products

HRC 2 mm thickness improved during last week in Iran due to low supply level. It was Rials17.5 million/mt on truck in Anzali and Rials17 million at Imam Khomeini port by Saturday, then finished the week respectively at Rials18 million /mt and Rials17.4million/mt on truck including 9% VAT and custom duties. During first quarter in Iran, HRC 2 mm thickness import level has been 104,000 mt, 71,000 mt and 45,000 mt respectively. Minimum purchase price from CIS has been USD350/mt cfr northern ports. Therefore minimum finished price at Anzali port would be Rials16.6 million/mt including VAT and custom duty.

Import level has declined significantly, though, lower supply level and rising prices has been something expected.

HRC 2.5-8 mm thickness was unchanged. Size 8-15 mm dropped by Rials100,000/mt due to market sadness.

HRP market was faced with limited supply level of Oxin and Kavian co like previous weeks.

In CRC market limited availability helped improved prices. Import level has been low as during first quarter it was 35,000 mt, 55,000 mt and 16,000 mt. Besides, global prices are downward therefore any improvement in Iran market won’t be permanent.

HDG market was calm and prices stayed almost unchanged during last week in Iran.