Billet
Billet price trend was upward by USD 42/mt to
USD 542/mt ex-work including VAT by end of the week. Re-rollers demand for
billet increased the competition at IME ( Iran Mercantile Exchange). Long-term sales showed
surprising figures, but were canceled.
Long Products
Rebar price was upward from USD 645 /mt to USD
683/mt by end of the week. The market has actually
been activated, but there is not enough inventory at mills’ warehouses, therefore,
it made prices upward.
I-beam price also increased as its supply
declined and demand level improved. Its average price was up by USD 5/mt to USD
887/mt.
Flat Products
HRC price was almost stable as its consumer
markets have not been activated yet. HRC 2 mm thickness changed from USD 856/mt
ex-work Mobarkeh on Saturday to USD 922/mt by last Wednesday.
Oxin co HRP had a calm market, but on Monday,
suddenly the rumor of power cuts from May 22nd, made market concerned and caused an increase
in its price from USD 809/mt to USD 875/mt. This is despite the fact
that mill’s offer at IME did not have buyer.
CRC market was quiet as its consumer markets were
not active yet. Its prices changed from USD 1342/mt to USD 1357/mt.
HRC quiet market and ex-rate downward trend
made HDG market almost stable. It changed from USD
1356/mt to USD 1372/mt, then dropped to USD 1368/mt by end of the week.
Weekly Analysis:
In world market:
With more activity in China market and resumption
of their export, prices began to decline, while Iranian exporters are seeking
to gain their market share, for this reason, the competition for discounts is
said to be very serious. Besides, Iranian exporters will be facing many problems
due to new regulations announced, which practically will stop their export. Apart from all this, oil price is decreasing, which means that demand
for our products will decrease, especially in the steel market.
In domestic market:
The government's plan is to balance the market through various
decisions but inflationary expectations and the possibility of power cuts have
caused the market to continue on its own way. The new decision to supply exporting goods in the export ring in
Rials will bring many problems for Iranian producers. For this reason, it seems
that the government's such decisions cannot be continued, especially since
summer is coming with power cuts.
CBI average ex-rate for Steel Products
(SANA): Rials 379,453/ 1USD
24 Apr 2023
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM