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Iran steel market Trend in Week 39th , 2020

Iran steel market Trend in Week 39th   , 2020

Billet

Last Saturday billet average price in Iran domestic market was USD 399/mt ex-work including 9% VAT, which reached USD 415/mt by end of the week. Higher base price at IME ( Iran Mercantile Exchange) helped its upward trend, while the market demand was not strong like previous weeks.

Export price of billet and ex-rate has been upward, besides DRI price is expected to increase further, therefore billet market trend is clearly upward for a while.

Long Products

Average price of rebar on last Saturday was USD444/mt, but by end of the week it reached  USD454 /mt ex-work including 9% VAT. Rebars bought at IME in the previous weeks do not allow the retail market price to accelerate fast and the market is looking at the previous weeks’ purchase prices with limited demand. As a result, although the price trend is upward, but trading volume is low. Two factors including low trading volume and cheap inventories of previous weeks, caused the market to be relatively calm.

I-beam price was faced with a steady trend for sizes 14 to 18 and the average price of USD 547 /mt on Saturday reached USD 548/mt ex-work including 9% VAT by Wednesday. But large sizes had a sharp increase in price. The reason for the relative stability of I-beam market was the delivery of September quotas, which were bought at a cheaper price on IME two to three months ago. I-beam supply volume at IME is stable, therefore traders are not worried about this product.

Flat Products

HRC 2 mm thickness on last Saturday was USD 720/mt ex-work Esfahan, which reached USD 735/mt by Wednesday. HRC thickness of 3 to 15 mm in Esfahan, which was priced at USD 582 /mt on Saturday, reached USD 589 /mt by the end of the week. Last week, slab base price at IME rose from USD 348 /mt to USD 392 /mt. Higher demand and prices in global markets within last two months and higher ex-rate were behind this upward trend. But higher export volume was the main reason. Therefore, Oxin co HRP price rose from USD 573/mt to USD 574/mt by end of the week. Market is waiting for a surge in prices in coming month.

CRC market was quiet by beginning of the week. Its average price changed from USD 948/mt to USD 963/mt by Tuesday, but jumped to USD 1017 /mt on Wednesday. It is unlikely that the price trend will be reversed.

HDG, which was priced at USD 899 /mt on last Saturday, reached USD 943 /mt by end of the week. Higher HRC price and ex-rate made HDG upward.

CBI weekly average ex-rate for Steel Products (SANA): Rials  269.404/ 1USD

28 Sep 2020

Sep 28, 2020 15:14
Number of visit : 1,480

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