Same as previous weeks, Billet Trend was downward. Size 150 MM in Anzali cost at IRR 17,100,000 M/TNS. Domestic mills size 150 MM also offered at same price, size 125 MM, offered at IRR 16,200,000 M/TNS up to IRR 16,400,000 M/TNS but volume of deals was too low.
Most of buyers, order very cautiously. Negotiation of 5+1 improved Rial against USDollar rate, it supported wait and watch policy, so traders started to offer their stocks. Due weak demand, endusers reduced their inquiries.
Most of participant expect that foolad Khozestan reduce his billet price in IME, as all producers of long products are losing at today’s retail price, by continuing this situation, they might stop producing long products. The other factor which empower this expectation is fasting month that will start next week and also seasonal market depreciation.
In Middle East region, billet price is coming down. Completion of CIS and Chinese billet will force Foolad Khozestan and Isfahan Steel plant to reduce their export price, or they have to reduce their price in domestic market, the last choice for them is to limit supply in IME, and it seems that they chose last one, but how long are they willing to continue this policy?
Source – Irsteel.com