Iranian Long Steel Market Analysis
Iran was the biggest producer of crude steel in the Middle East in 2013, according to the World Steel Association’s latest press release.Iran produced 15.4 million tons of crude steel in 2013, 6.6 percent rise compared to 2012. This year, ıts been planning, 16.5 million tons of crude steel will be produced even there is a annual crude steel capacity of 24 million ton.
If we look at current Iranian local market situation , domestic scrap prices are %8 VAT included between 380-390$/mt exworks. Local billet prices are %8 VAT included 520$/mt exworks. However market demand is weak because of the goverment’s low budget arrangements for constructional projects. In addıtıon to that, raw materıal prices are too hıgh for Iranıan producers. They were mostly purchasing DRI and ıron ore from China, however after Chına started to ımpose %25 export tariff, that caused pressure on Iranıan steel producers. Local rebar offers are approxiametly %8 VAT included 580$/mt exworks.
In export market, Iranian billet offers are like 514$/mt FOB however, producers maınly use semı-fınıshed products for their own steel productıon. Their rebar export prices for 16-25 mm is as 560$/mt FOB that Iranian maın rebar export markets are Afganistan,Turkmenıstan..etc. Turkısh billet producers are also offering 530-540$/mt FOB to that region, however ıts somehow hard to sell Iran because of higher offers of Turkey ın contrast local offers and Iranian steel capacity enhancement on steel.