Billet market was upward till middle of week 51 and was IRR 15,800,000 per tonne on truck in Anzali including 5% VAT for size 150 mm. Then after declines in ex-rate, billet market became quiet with some downward prices. It finished the week at IRR 15,600,000 per tonne but still no taker in the market. The situation for opening LC has improved but market sadness made importers in wait and see policy.
During last Iranian month total billet supply level in Iran was 340,223 tonnes compared to 456,879 tones a month ago.
Import level has dropped but domestic producers have gotten more share of the market. It is good news for Iran steel market but it should be noted that at the moment long products market is depressed, so billet demand is low. Any improvement in billet demand is unlikely in coming 2 months. The sadness has ended in lower production of domestic producers too, besides many of them are in cash shortage.
Long products supply shortage won't be avoidable due to current situation, but it won't end in any rise in prices as demand level is downward.
Source:
http://www.steelguru.com/middle_east_news/Iran_Steel_Market_Trend_in_Week_51_Billet/296317.html
