Billet
Billet price was downward during last
week in Iran domestic market from USD 577/mt to USD 574/mt ex-work including
VAT due to
weak demand and government pressure to reduce the prices.
Long Products
The downward trend of rebar price intensified last
week. Market insiders
believe that prices has not reached the bottom, so market is in waiting mood.
Rebar average price dropped from USD 679/mt to 676/mt ex-work including VAT by
end of the week.
Lack of demand and higher supply level by Esfahan Steel
co affected I-beam market. Its average price dropped by USD 19/mt to USD 732
/mt by end of the week. Market participants do not expect any improvement in
this situation at least within next two months.
Flat Products
Limited demand level
made HRC market downward. HRC 2 mm thickness decreased from USD 877/MT at the
beginning of the week to USD 866/MT ex-work Mobarkeh by the end of the week.
Lower demand made Oxin co HRP price
drop from USD 878/mt to USD 862/mt by end of the week.
CRC market is in seasonal recession and its average price dropped from USD 1267/mt
to USD 1237/mt during last week in Iran domestic market.
HDG offers were stable at around USD 1264/mt
during the week, but due to lower HRC prices, it was possible to buy HDG at
lower prices.
Weekly
Analysis:
In the world
market:
China market is not in a good situation. Last week, six big mills
announced that their profit have decreased by 12% and they see the second half
of the year as worse. Lower CNY rate
helps China's exports, which is not good for our exports because China is a big
competitor in the Far East market for Iranian mills. Any immediate improvement
in China market situation seems unlikely. The global market
has not yet woken up and the same condition will prevail for at least another
month because the policy of stagnation to fight inflation continues.
In the domestic
market:
Domestic market still revolves around the government's
preference for export and suppression of domestic demand. There
are rumors that DRI price should reach USD 296 /mt, billet at USD 498 /mt and
rebar up to USD 538/mt. Today's market prices
are not far from that and the waiting policy preveiling the market would be the
best help for this goal.
When prices are down, production lags and the
result would be stagnation which will causes stoppages and bankruptcies. Governments are not
sensitive to the bankruptcy of the private sector, but the state companies are their
priority. The process of
stagnation continues until the government reaches its goal in its policy, then
it changes the line, the same procedure prevails all over the world.
CBI average ex-rate for Steel Products
(SANA): Rials 371,697 / 1USD
10 July 2023
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM