Billet market was quiet during last week in Iran. Long products sad market has affected billet production and billet producers are working at lowest capacity. Besides, year end in near in Iran ( end at 20 March 2015), so lack of liquidity and financing problems will increase the pressure on steel mills.
Billet size 150 mm was offered at IRR 15.6 million metric tonne on truck in Anzali including 8% VAT in import market. Domestic billet size 150 mm was IRR 15 million metric tonne to 15.1 million metric tonne and size 120 mm around IRR 14.7 million metric tonne to 14.8 million metric tonne ex-work including 8% VAT.
Khouzestan Steel Co currently has reduced billet base price, market participants expect Esfahan Steel Co follow it. As long products demand level is down, billet price will continue declining till current Iranian year end.
Last Tuesday, market leader Khouzestan Steel Co offered around 100,000 metric tonne billet at IME (Iran Mercantile Exchange), but sold just 11,000 metric tonne of it. Some market participants do not expect more than IRR 00,000 per metric tonne reduction for billet price till year end. But this wide difference between supply and demand level says that billet price will be more downward in coming week
Source – Irsteel
Zhejiang Yaang Pipe Industry Co., Limited