Billet
Billet price had a limited increase during
last week in Iran domestic market from USD 592/mt to USD 597/mt ex-work
including VAT, which was caused by higher DRI price.
Long Products
Rebar price went up due to the increase in billet
base price at IME. Rebar average price changed from USD 694/mt to USD 703/mt by
end of the week. Inflationary expectations caused by possible power cuts affected market sentiment.
I-beam market had an almost stable trend,
which was caused by Esfahan Steel co market control policy especilly for size
14. Market Average price changed from USD 808/mt to USD 828/mt.
Flat Products
HRC 2 mm thickness improved by USD 26/mt to USD 943/mt ex-work
Mobarkeh by
end of the week. Supply control policy by the mill made HRC market
upward.
Lower supply level by Oxin co made HRP market upward from USD 855/mt
to USD 885/mt by end of the week.
CRC market was faced with a decrease in its
average price from USD 1347/mt to USD 1343/mt due to a drop in the price of some
thicknesses, but practically the market was stable.
Higher HRC price made HDG price up from USD 1322/mt to USD 1330/mt
ex-work including VAT.
Weekly Analysis:
In the world market:
Global markets are still unstable. China's demand
has remained quiet, and there is no reason for any improvement in demand in
other countries too. Higher supply by Russian mills due to their need for
foreign currency does not let weak markets to survive in this situation. In
addition, continuation of economic recession in USA and Europe has weakened market
outlook for the coming months, especially in the property market. In the oil
market, all eyes are on the new decision of OPEC+, hoping that the decision of
this group will improve oil price, as its price is near bottom.
In the domestic market:
In the domestic market, two different views are prevailing in the market.
The first point of view believes that prices will have an upward trend. The
reasons are upward pellet and DRI price at IME and higher transportation rates.
Another reason that this group relies on is the power cuts issue, which will
reduce production level. The third reason is also the
possibility of an increase in exchange rate.
The second view believes that prices will not
increase due to changes in foreign policy that can be expanded. As a result, it will
lower exchange rate.
CBI average ex-rate for Steel Products
(SANA): Rials 383,644/ 1USD
29 May 2023
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM