Billet
Billet price declined slightly from USD 617/mt
to USD 609/mt ex-work including VAT which was due to downward ex-rate, but with
its increase, billet price went up again. Power cuts has questioned supply and
demand of billet. Stability of its price at IME caused the market to reject further
downward trend.
Long Products
Ex-rate fluctuations made rebar market stopped.
Its average price changed from USD 722/mt to USD 708/mt. Market is in waiting
mood.
Esfahan Steel co increased supply level which made
I-beam price downward from USD 819/mt to USD 792/mt ex-work including VAT.
Flat Products
HRC
2 mm thickness decreased from USD 931/mt to USD 923/mt ex-work Mobarkeh by
end
of the week. HRC price decreased with the fall of exchange rate, but its return
and more importantly, Mobarakeh Steel co supply stabilized the market.
Oxin
co HRP price also declined liken other products with ex-rate fluctuations from
USD 874/mt to USD 871/mt.
Chinese
CRC offers made domestic market downward from USD 1343/mt to USD 1322/mt with
Mobarakeh Steel co supply level declining.
Currency
rate fluctuations affected HDG market and it was down from USD 1312/mt to USD 1305/mt
ex-work including VAT.
Weekly Analysis:
In the world market:
Steel
prices has remained almost stable in the world market, which is caused by the
stagnation of demand. Getting out of this recession depends more on the
condition of Chinese market. The Chinese government actively monitors the
market, has increased housing loans, but also lowered the interest rate, which
has reduced the ability of banks to lend. Oil price is not expected to improve
in near future. Monsoon season has reduced demand in the Far East. These situation
will continue in the markets for the next two months.
In the domestic market:
On the supply side, prices are stable for now.
DRI price at IME has remained almost stable and the decrease in its demand
provides opportunities for exporters, so the excess supply is not serious on
paper. On the other hand, power cuts has affected its
production level. Billet price has remained almost constant, price of slab has
not changed in the domestic market despite a slight decrease in global market.
Due to the stability billet and slab and currency rate, naturally, price of steel
finished products at IME cannot change seriously.
It should be noted that
the price reduction due to the electricity limitations will reduce the
production, which will lead to an increase in prices.
But beside demand, the
market is in waiting policy. Despite the fact that the government announces the
arrival of foreign currency and has increased housing construction facilities,
the government's payments to construction companies have been delayed.
Overall, in the short
term supply and demand does not show any serious change.
Main factors influencing
steel market at the moment are ex-rate and energy secton problems.
CBI
average ex-rate for Steel Products (SANA): Rials 372,500/ 1USD
19
June 2023
M.Chitsaz
Iran
Steel News Bulletin
IFNAA.IR
IRSTEEL.COM