Billet
Billet market was upward during last week in Iran domestic
market due to empty warehouse of re-rollers, which increased demand level. Credit offers at IME helped to raise its
price from USD 582/mt to around USD 586/mt ex-work including VAT.
Long Products
The increase in billet price made rebar price
upward, while demand was very limited. Its average price
rose from USD 661/mt to USD 665/mt ex-work including VAT.
Higher long products prices and positive market
sentiment made I-beam upward from USD 691/mt to USD 713/mt by end of the week.
Flat Products
HRC 2 mm thickness was USD 898 /mt ex-work Mobarakeh on Saturday, which reached USD 909/mt by
Wednesday. Limited increase in ex-rate improved HRC market sentiment, but became
quiet soon.
Oxin co HRP market remained calm and almost
unchanged, but its price has no room to decrease more. Its average price
changed from USD 849/mt to USD 852/mt ex-work including VAT.
CRC price remained stable at USD 1138/mt
ex-work, as holiday sentiment kept the market quiet.
HDG average price stayed
at around USD 1115/mt ex-work including VAT.
Weekly Analysis:
In the world market:
Golobal market is still sluggish, but prices
are not willing to decrease and are slowly increasing. Oil price is rising,
which is caused by restockings of Americans. Scrap price has an
upward trend, which drives billet price up. Concerns about China
market is more serious in the financial market of this country than in the
commodity market, although demand is weak, financial abilities of this country
has not allowed a serious economic crisis to occur.
In the domestic market:
In the domestic market, from raw materials to
semi finished products, market is booming. Despite closure of billet
producers, DRI export has greatly increased and multiplied. The same model is
seen in iron ore concentrate, pellet and billet market as despite higher
production, export level has filled the gap of limited domestic consumption. This is completely
logical and profitable, and the difference in export prices with sales at IME
justifies this. Finished products
mills also welcome not selling their products at IME because it gives them the
opportunity to sell in the spot market or export. In any case, the
increase in the export of mineral products will increase billet and steel products
prices, although there is no demand in the market, but the price increase is
inevitable due to the increase in the price of raw materials. The gap of about ten
percent between the stock market prices and the free market for rebar is
affected by this. Stock market will
not have the strength to deal with this trend until export market is active.
Volatile weeks are coming as billet producers’ power shortage is easing, which
will increase DRI demand on the one hand and increase billet supply level on
the other hand.
CBI average ex-rate for Steel Products
(SANA): Rials 371,930 / 1USD
11 Sep 2023
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM