Billet
Billet price
fluctuated during last week in Iran domestic market. Hopes about higher supply
at IME pressured prices, but then supply limitation and higher ex-rate kept prices.
It seems that according to upward global rates, market upward trend would be
durable. Its average price changed from USD 620 mt to USD 622 /me ex-work
including VAT.
Long Products
Rebar price was downward from USD 708/mt
to USD 700/mt during last week in Iran domestic market. The reason was that
markets were closed the previous week and when opened, cheap rebar was available
in the market. But lower supply and the problem of billet supply kept the
market. I-beam price stayed due to Esfahan Steel co market control.
Flat Products
HRC 2 mm thickness changed from USD 1000/mt
to USD 1046/mt by end of the week. Limited supply of Mubarakeh Steel co raised market
prices, while many traders were absent which reduced supply volume more.
Oxin co supply level was severely
constrained, but more important is the increase in global slab price, which has
had a strong impact on IME. This caused prices to increase from USD 985/mt to
USD 1013/mt ex-work including VAT by end of the week.
CRC supply level has decreased and the
exchange rate fluctuation has also caused the market of this product to be
messed up. Its price changed from USD 1364/mt to USD 1406/mt.
Higher HRC price made HDG also upward,
although zinc price increase had an effect on its price too. It was up from USD
1303/mt to USD 1380/mt ex-work including VAT by end of the week.
Weekly Analysis:
In the global market, China was in a holiday mood and its impact will not be
known for two weeks, but the price trend will probably be upward.
In the domestic market, the price trend was
stable last week. There are two opposite possibilities for the coming weeks:
The first possibility looks at the price
reduction because it expects billet price to decrease with the increase in DRI
supply level. On the other hand, demand will be decreasing as it is year end
market sentiment.
The second possibility believes that today's
price of billet has been calculated with DRI price of less than USD 351/mt ,
but higher gas price in government budget will increase the base price of DRI,
so its price will not decrease seriously. On the other hand, global billet
market sentiment is upward, if the price falls in the domestic market, export
market will compensates it.
Regardless of which possibility is true, the
determining factor is still exchange rate.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 285,000/ 1USD
23 Jan 2023
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM