Billet
Billet price decreased over the weekend due to silence
of long products market from USD 143513/mt to USD 142713/mt ex-work including
VAT. The announcement of
the sale of DRI to billet producers caused a drop in DRI price, which will show
its effect on the market in coming days. Generally quiet
market will make downward trend more serious.
Long Products
Rebar price remained stable and did not change
seriously, changed from USD164025/mt to USD 163728/mt. The
reason for this is mostly due to non-economic issues, because the market does
not have a positive outlook and is waiting for a calm situation.
Due to silence of the market, I-beam had a
downward trend from USD187667/mt to USD 186000/mt. For now, everyone is waiting
for the coming days for the market to be open and active.
Flat Products
Mobarakeh steel co
HRC 2 mm thickness was USD 211000/mt on Saturday, which reached
USD 210000 /mt ex-work by Wednesday. With inactivity of some parts of the market
and higher ex-rate, some improvements were seen, but transactions level was very
limited.
Oxin co HRP remained stable due to limited
supply of the mill and showed a slight decrease by end of the week from USD
251750/mt to USD 251000/mt, which was affected by the market stoppage.
Market stoppage made CRC also almost unchanged
at around USD 293800-294900/mt.
HDG market also remained
calm and followed HRC market It was mostly around USD 293038/mt during last
week.
Weekly Analysis:
Currently global markets hope for improvement
of China market has faded as Covid-19 outbreaks again rising with easing of restrictions. Billet and scrap
also have faced a price drop of USD 10 -20 /mt in global markets. Oil price is still at
around USD 90/barrel. Global market
outlook is stable and if nothing special happens in China, will be the same until
end of 2022.
In Iran domestic market, everything is tied to social
stability, government tries to control exchange rate, sells gold and currency
bonds which is also sign of possible increase of ex-rate. But
tensions have made the market worried.
Currently steel export to Iraq has increased
significantly, higher ex-rate in Iran and more oil income in Iraq are the main
reasons, but price of Iranian products in the country has decreased too. With the
continuation of this trend, Iraq market will soon slow down. The only thing that
can have an increasing effect on prices at the moment might be gas supply cut
of DRI producers, which due to market sadness its affects may not be
significant.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 275,865/ 1USD
21 Nov 2022
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM