Billet
From beginning of last week, it was clear that billet price would have a
downward trend in Iran domestic market due to lack of demand in long products market. Average price of
billet size 150 mm declined from USD 512/mt to USD 503/mt ex-work including 9%
VAT.
This week, its base price at IME ( Iran Mercantile Exchange) will decrease because export price has also dropped.
Long
Products
Lack of demand and cautious
moves of traders, made rebar price declining during last week in Iran. Only due
to fluctuations in currency rate on Monday, there was a move in trading level.
Its average price dropped from USD 569/mt
to USD 553/mt ex-work including VAT by end of the week.
Lack of buying
interest reduced price of I-beam to the point that less than 100 tons of it was
sold on IME. Its price declined from USD 592/mt to USD 575/mt ex-work including
VAT.
Flat
Products
2 mm thickness HRC
was USD 965 /mt on last Saturday in Esfahan and reached USD 921 /mt ex-work
including VAT by end of the week. Price of other Mobarakeh Steel co HRC items
also fell despite supply constraints.
Oxin
Co HRP was stable, but the market is slowly accepting a reduction in supply, so
there is a possibility of a price increase if supply level stays the same. Its price was around USD 837-842/mt.
Kavian co HRP was downward due to demand problems and enough market
inventory from USD795/mt to USD786/mt.
CRC
price was downward from USD1239 /mt to USD1191/mt ex-work including VAT. The
market was waiting for a clear situation at IME until Tuesday, but demand is
limited and prices do not have the capacity to increase. Due to declining profit margins,
capitals escape from this market.
In HDG market, downward HRC price made the market
downward too from USD 1144/mt to USD1117/mt by end of the week.
It is very difficult to predict market trend in coming days because steel
market follows exchange rate and the currency market is involved in political
issues. If the exchange rate falls, prices will decline due to Chinese New Year
Holiday coming and the downward trend in prices globally. The market is waiting for something to happen. At present, the policy of maintaining liquidity is the dominant policy
in domestic steel market.
CBI
weekly average ex-rate for Steel Products (SANA): Rials 228,062 USD
25 Jan
2021