Billet
Billet price increased during
last week in Iran domestic market from USD 549/mt to USD 554/mt despite lower
DRI price. The reason behind
upward trend was higher ex-rate and credit sales.
Long Products
Higher ex- rate and market
expectations about prices reaching the bottom level made rebar price up from
USD 644/mt to USD 646/mt ex-work including VAT. Delayed payment
offers at IME helped this trend.
Higher ex-rate and market
expectations made I-beam market rise from USD 678/mt to USD 687/mt ex-work
including VAT.
Flat Products
HRC 2 mm thickness changed from USD 840/MT at the beginning of
the week to USD 830/MT ex-work Mobarkeh by end of the week. HRC price has reached the bottom and higher currency rate was the reason
for the price change.
The market is still not
optimistic about the future of HRP market. The competition of suppliers
has limited the space for any change. For this reason, the
price trend was downward from USD 863/mt to USD 851/mt ex-work including VAT.
CRC demand has not yet
returned to the market, that's why price had a downward trend from USD 1138/mt
to USD 1134/mt ex-work including VAT.
Lack of demand made HDG price
down from USD 1121/mt to USD 1092/mt by end of the week.
Weekly Analysis:
In the world market:
Global markets are gradually being activated, rainy
season in China will certainly shake up demand next month while prices have
bottomed out. Scrap prices
remained stable after weeks of decline, and billet market is almost stable. Therefore, the
possibility of further price reduction is weak, but the demand is still weak
and does not have the power to affect prices.
In the domestic market:
Flat
products offers at IME have no buying interest which indicates weak condition of
industry
in the domestic market. Higher ex-rate caused prices to rise
but previous week's credit sales do not allow prices to improve significantly. Prices in Iran
market, like the rest of the world, have reached their bottom and there is no
more room for reduction. Higher gas and
electricity costs, along with the decrease in production due to power cuts, has
caused mills production costs increase. But market
sentiment is not optimistic and seems that prices will stay stable. Therefore, there is
no hope for a serious change in the coming weeks.
CBI
average ex-rate for Steel Products (SANA): Rials 372,394/ 1USD
07 Aug 2023
M.Chitsaz
Iran
Steel News Bulletin
IFNAA.IR
IRSTEEL.COM