Billet
Billet had an upward
trend during last week in Iran domestic market from USD 646 /mt to USD 660 /mt
ex-work including 9% VAT due to marketing of billet producers at IME ( Iran
Mercantile Exchange). While most of the billet offered at IME was not being
sold as suppliers were expecting so.
Long
Products
While everyone expected rebar market to
be stable, higher billet price at IME made rebar also increased from USD 708/mt
to USD 718/mt. I-beam price was also upward due to higher prices at IME from
USD 722 /mt to USD 740/mt ex-work including VAT.
Flat
Products
Mobarakeh Steel co 2 mm thickness HRC was USD 1129/mt on last Saturday,
which reached USD 1114/mt by Wednesday. The price stability of 2 mm HRC
indicates steel market quiet sentiment, especially pipes and profiles markets.
Price of 3 to 15 mm HRC remained stable. There are signs of a drop in price of
these products and sellers are ready for more discounts.
Oxin co HRP was faced with a limited price drop from USD 1342/mt to USD 1335
/mt. Market inventory is limited but demand level is also low. Kavian co HRP was stable at USD 1149 /mt ex-work including VAT as the mill was managing market trend.
CRC price was down from USD 1375/mt to USD 1370 /mt ex-work including VAT by end of the week. Mobarakeh Steel co’s announcement about higher supply
level at IME made market trend downward. HDG price was upward till mid-week from
USD 1400/mt on Saturday to USD 1422/mt, but as HRC price declined, HDG price
also dropped to USD 1407/mt ex-work
including VAT by end of the week.
Weekly Analysis:
At the moment
domestic steel prices are almost the same as export prices being offered at Iranian
ports. If global prices increase, domestic market would be upward too, but if
global prices decrease, Iran domestic market will have problems as raw
materials has increased over the past two months and all pricing equations have
messed up.
Besides, all news
shows that Chinese government is desperately seeking to control steel prices,
and this will have a negative effect on our export steel prices and,
consequently, our domestic market.
Two only positive
factors are: first, rising oil prices, which would limit steel price downward
trend. And secondly, better economic conditions in other parts of the world,
especially the United States, Europe and eventually India.
Regardless of what
is happening in the world market, Iran market is waiting for the Presidential election
on 18th June, and until next government takes office nothing
especial would happen in domestic market. The only prediction is that steel
producers will try to maintain market share through IME and will not allow price
corrections as much as possible.
CBI
weekly average ex-rate for Steel Products (SANA): Rials 202,779 USD
31 May
2021