Billet: Billet prices had an upward trend last week in Iran. At the beginning of the week, sizes 100-150 mm and were offered for $550/t FOT Iranian northern port including 3% VAT. Suppliers' decreased quantity of offering for size 150 mm, which made its price rise to $572/t at the end of the week, although some offers werew prevailing at $592/t.

Price rise of billet in Iran market has two important reasons. Firstly, supply has been so limited due to falling import levels during last two months and secondly because of long products increasing prices, especially for rebar.

Long products: By the start of last week, I-beam was up by $10/t in Tehran market. Equal angle price was up by $5-10/t and UNP around $5-20/t, price of H-beam was increased by $40/t .

On Monday, prices dropped a little but sellers were almost out of market and a day after that, it started to increase again. The reason is that sections consumption has increased due to state housing projects and Isfahan Steel mill has decreased shipment of rebar and I-beam. Increasing price of billet has helped long products market rising prices too.

In current Iranian month (began at June 22nd), I-beam import levels have decreased harshly but yet there are a lot of inventories of Korean, Chinese, Russian and Turkish material in Iran market.

Flat products: Hot rolled coil 2 mm thick was priced at $572/t FOT Iranian northern port at the beginning of last week and finished the week at higher level of $602/t. It's expected that during first days of current week, the material's price will fall under $602/t but generally, price sentiment is upward as import levels have decreased and demand is growing due to government projects.

HDG price was stable last week due to limited import offers and CRC price didn't change so much despite upward sentiment.

At the moment, HRC 2.5-5 mm thick has limited inventory in domestic market but market stagnancy doesn't let prices increase.

Limited supply of CRC from Mobarakeh Steel mill has made imported material price to be stable and HDG price didn't change due to low supply. Many experts believe as number of foreign suppliers in Iran import market will decrease in coming months, a shortage of flat products is expected and consequently prices will start rising from autumn.

Current offer price of HRC 2 mm thick from CIS region is $560-570/t CFR northern Iranian port at Caspian Sea.

Price of CRC, Kazakhstan origin is $645/t and HDG of the same origin $780/t CFR with LC at sight.

Source: Irsteel