Billet
Billet price hit its peak last week and was recorded at high average price
of USD 490/mt ex-work including 9% VAT. The price increase was predicted from a
week ago, due to limited supply and heavy demand from re-rollers.
Khuzestan steel co sold its product at the highest price of USD 461 /mt
ex-work including 9% VAT on Tuesday, while it had sold it at USD 441/mt in the
previous offer. After this transaction market slowed down. Billet supply
improved and re-rollers stayed back.
This condition was expected. On the other hand, downward trend of
global billet price, transportation problem for Iranian products and New
Iranian Year Holidays that will actually start from next week onward, will help
billet price reverse.
Some market participants may start forward purchasing rebar in hope of
higher prices next Iranian Year ( from 21 March onward), but first half of spring is usually
recession time in Iran market, with quiet sentiment of Holy Month of Ramadan which
will be added to it next year.
Long Products
Long products were upward during last week in Iran as debar average
price improved from USD 545/mt to USD 567/mt ex-work including 9% VAT. The main factor behind the rise in
price was billet limited supply and speculative expectations of the market.
But by Wednesday, market became quiet and discounts began which
will be reflected in the market in coming days. I-beam, angle and UNP also
followed this trend.
Flat Products
HRC market was inflamed last week. Average
price of 3 to 15 mm thickness HRC from Mobarakeh steel co ranged from USD 645 /mt to USD 704/mt. HRC 2 mm thickness was not
offered on Saturday in Isfahan market, but on Sunday was USD 641/mt ex-work Isfahan
including VAT and in Ahwaz was USD 607 /mt ex-work including VAT .
The week continued with price increase of
Isfahan HRC to USD 664 /mt and Ahwaz Rolling and Pipe co price up to USD 641 /mt. While from
Wednesday onward, sellers were more in the market than buyers.
The reason for the increase in HRC price
was higher base price offer by Mobarakeh Steel co at IME , which caused demand
to get back and remain close to supply level, while the volume of inventory in
the warehouses was not serious.
Last week, the market finally came up
with supply of 20 mm thickness HRP from Oxin co, sellers increased average
price from USD 611 /mt to USD 644.5/mt ex-work including VAT.
CRC was hit by Mobarakeh Steel co sharp
increase in base price, which did not let demand improve at IME, but average price
on Saturday was USD 789/mt , then rose to USD 851 /mt . Market inventory is
seriously limited but demand is also low.
HDG was faced with a sharp increase in
price at IME. Actually base price rose by USD 172 /mt compared to a week ago
which was USD 927/mt ex-work excluding VAT. By Wednesday average retail market
price was USD 1095/mt including VAT which shows retail market price is cheaper
than IME.
-----------------------------
CBI
weekly average ex-rate for Steel Products (SANA): Rials 87,350/ 1USD
04 Mar, 2019
----------------------------------------------
Iran
Steel News Bulletin