Billet
Billet price went down due to lower global
prices and the pressure of the government to reduce prices. On Wednesday, billet
market looked for improvements as it participants were expecting higher DRI
price in the next week, and sellers retreated from the market.
Average billet price changed from USD 604/mt to USD 564/mt ex-work including VAT by end
of the week.
Long Products
Rebar price was downward following government policies
and the global trend of demand and prices. Most mills producing
rebar are facing with inventory problems. According to the
market, the price floor of rebar including value added tax is USD 603/mt, while
some rumors talk about authorities intention to decline it to USD 550 /mt.
Market average price during last week dropped from USD 730/mt to USD 695/mt
ex-work including VAT.
I-beam had a downward trend,
which was affected by the psychological atmosphere prevailing in the market. It was down from USD 856/mt to USD 834/mt by end of the week. On Tuesday, Isfahan Steel
co prevented the fall by stopping shipment of goods.
Flat Products
HRC 2 mm thickness declined from USD 949/mt to USD 933/mt ex-work
Mobarkeh by end of the week. The market had a downward trend due to lower ex-rate, downward
global prices and market stagnation, but since Tuesday, when it became clear
that Mobarakeh Steel co has stopped supply, prices slightly improved.
Oxin co supply stoppage has kept HRP market
relatively stable. Price changed from USD 878/mt to USD 871/mt.
CRC average price dropped slightly from USD 1394/mt
to USD 1385/mt as HRC market had a slow downward trend too.
HDG had a stable market and showed a very
limited decline at the end of the week from USD 1363/mt to USD 1358/mt.
Weekly Analysis:
In world market:
Global markets are still in a downward trend,
but it seems that prices have reached the bottom. China market trend determines
billet and HRC price trend, which is currently quiet. On the other hand, Turkey
market waiting for the election reduced scrap price to its minimum. As summer Holidays
in world markets is near, markets usually fall and sty quiet in June and July,
so there is not much hope for a price increase at the global level, and we have
to wait, especially since oil price has started to decline as the weather warms
up.
In domestic market:
Thanks to the wrong policies at Mercantile
Exchange, market is so confused and can’t have any logical analysis for it. Iran Mercantile Exchange is pushing billet
price to return to below USD 524/mt excluding VAT. Lower global billet prices justifies
this policy, but increaing DRI price at IME contradicts with the decrease in
billet price, while pellet does not have a serious buyer in the domestic
market, IME has increased its price by 5% for this week. On the other hand,
production side is under pressure from two sides, the first is the liquidity
aspect and the second one higher cost price. Power tariff is rising,
while the possibility of power cuts is very strong from May 22nd with industrial section to be the first victims.
It seems that IME is trying to increase supply
volume before power cuts begin and lower the base prices so that there would be
enough inventory in warehouses during summer power cuts. But the market looks
at other factors affecting the market which have increased market concers and
mistrust in government policies.
Most of the steel market participants try to
rely on the minimum inventory level and and lower their risk range while the
market believes that prices have reached their bottom and are ready to return.
CBI average ex-rate for Steel Products
(SANA): Rials 381,559/ 1USD
15 May 2023
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM