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Iran Steel Market Trend Iran Steel Market Trend (Visit Count : 2264)

Billet

Billet size 150 mm was Rials12.9million/mt ex-work including 9% VAT by beginning of last week. Esfahan Steel co made long products prices upward by declining supply level. This made billet price also upward. But by Monday, billet price became downward again and finished the week at the same price which started the week. There was no buying interest for billet size 150 mm at Rials12.9million/mt.

Billet size 125 mm was also Rials11.8-12.3 million/mt ex-work including 9% VAT with limited buyers available.

In Iran domestic market, billet and iron ore price are connected to each other. If billet price drop, DRI price also would decline. But it won’t be an easy affair due to government’s role in between for pricing.

As billet size 125 mm is being produced by scrap, rise in its price will increase scrap price too. Therefore, billet producers’ margin rate won’t change and this would just damage long products producers. When billet price decline, scrap supply level drops and would end in billet producer’s loss as lower scrap supply level will finish in its higher price.

Meanwhile re-rollers hope billet price would decline as the main factor for their products pricing. But it won’t happen easily and billet price would stay at around current level.

 

Long products

By last Saturday, market leader Esfahan Steel Co stopped offering as an old policy for marking market active. Lack of supply made some of its products rising by Rials500,000/mt. Some other mills made use of the situation and increased their long products by Rials100,000-300,000/mt. But upward prices didn’t helped demand level. The real winners were some other mills that didn’t change their prices and increased their sale level.

By Monday prices got back to last levels and Esfahan Steel co supply level get normal. But by end of the week market was again confused as the mill stopped delivering some cargoes. Market sentiment will be clear in coming days.

 

Flat Products

HRC 2 mm thickness was unchanged during last week in Iran. It was Rials17.7 million/mt on truck in Anzali port including 9% VAT and custom duty. During first 25 days of current Iranian month (22 Jul-15 Aug) around 65,368 mt of HRC has been imported to Iran whish is equal to last month’s (21 Jun-21 Jul) total import.

Due to change of management at Aktau port, some problem has occurred during last 10 days and delays in loading cargoes happened. End of May’s orders are ready to be loaded. When this happen, supply level increase and prices may decline as demand level is still low.

HRC 2.5 mm thickness from Mobarakeh Steel Co was in limited supply during last week. Thicknesses 3 mm or higher was available in the market and prices stable. HRP size 15 mm was also in low availability, but by end of the week Kavian co increased offers in limited tonnage and prices were stable. Just sizes 20 and 25 mm were scarce and prices have increased significantly. Oxin co delay in delivering cargoes has made traders depressed as many of them have prepaid the mill.

CRC market was faced with limited supply level and prices increased by Rials200,000-400,000/mt by Sunday. But when prices increased market became quiet and prices stayed unchanged. It was heard that around 20,000 mt of CRC will arrive in Iranian ports from CIS in coming month which will affect market sentiment. Besides domestic supply level for some thicknesses is limited by market Leader Mobarakeh Steel Co.

HDG market was in limited supply and prices improved by Rials300,000/mt, but demand level was still low.

Ex-rate:



Date: 8/23/2016
Source : www.irsteel.com
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