Billet
Billet price went down during last week in
Iran domestic market from USD 690/mt to USD 680/mt ex-work incuding VAT. Government's effort
to reduce prices, lower prices in global markets and the downward currency rate
were the main reasons behind this trend.
Long Products
Despite the fact that most of steel mills in Iran do not have enough inventory, the
atmosphere created by the government caused the buyers to stay back and rebar
price became downward from USD 887/mt to USD 847/mt ex-work incuding VAT.
I-beam market also experienced
the same sentiment and price was down from USD 1075/mt to USD 1034/mt.
Flat Products
Price of 2 mm thickness HRC ex-work Mobarakeh was USD 1173 /mt on
last Saturday, which reached USD 1177 /mt by Tuesday. Market was almost stable.
The volatility that
occurred earlier in the week was caused by speculators' attempts to decline
liquidity.
Lower currency rate and the decrease of slab
price, made Oxin co HRP downward to the point where some of its items have
reached lower than the suggested offer price of the mill itself at IME. Its average price dropped from USD 1157/mt to
USD 1117/mt.
CRC price declined from USD 1868/mt to USD 1837/mt
due to lower ex-rate and limited seasonal demand.
HDG market experienced a limited fluctuation due
to stagnation of HRC market, and on the other hand, lower ex-rate and its
effect on zinc price. Its average price changed from USD 1860/mt to USD 1856/mt
ex-work incuding VAT.
Weekly Analysis:
In global markets, with the reduction of oil
production by OPEC+, oil excess supply was almost collected and its price
remained stable at around USD 80 /Barrel. Therefore, in terms
of its relationship with oil, price of billet cannot drop to below USD480/mt
FOB, but lower global demand, as expected, recently lowered billet price by
about USD 50 /mt to around USD 520 -530/mt fob depending on the supplier country.
Rumors of economic recession in the coming
months promise further price reductions, so supply level will be greater than demand. This can put
pressure on Iran's domestic market in terms of supply level too. In order to compensate for the price increase in recent months,
the government has started efforts to increase finished cost price of billet from
the high of USD 815 /mt to about USD 638/mt,
and to achieve this goal, it has taken three ways, which include limiting demand level,
increasing supply and downward pricing policy.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 282,069/ 1USD
17 Apr 2023
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM