Billet
With the decline in demand, the price of Billet also decreased. Domestic billet sales on the Iran Mercantile Exchange (IME) dropped by 15 % w-o-w.
Its average price was USD564/mt ex-work including VAT.
Long Products
With the falling price of Billet and the pressure of the stock exchange on the price, the downward trend of the rebar price continued. Its average price changed from USD 652/mt to USD 647/mt.
Weak demand was the main reason for the drop in the price of steel beams from USD 697/mt to USD 695/mt by the end of the week.
Flat Products
HRC 2 mm thickness, Mobarakeh origin was traded between USD 903/mt to USD 905 /mt ex-work. The market silence caused the price to fall.
Oxin co HRP price was almost quiet and its average price was about USD 843/mt ex-work including VAT by end of the week.
CRC price was stable at USD 1145/mt during last week.
HDG market was stable, the price reached its bottom. Its price was USD 1136/mt by the end of the week.
Weekly Analysis:
In the world market:
Oil is still trying to reach $100 per barrel, which is not clear for now. The price of scrap is in the range of $370 and billet is $470 per ton fob. Currently, the situation is stable, but November is the month for starting the increase in demand. There is hope for the market to improve.
The positive signs are more than the negative.
In the domestic market:
Most of the participants believe that prices have reached their bottom. Sponge iron is going back to the last year levels, while all costs have increased.
Debar and sheet will drop to the bottom and there is no room for more decline. The market knows this, but two things have affected the market:
First, the expectation of demand increases, which requires the stability of the market to make sure that there is no further decline.
Second, liquidity is severely limited and it affects steel products. The supply of sponge iron in the stock market has almost halved from September, but its price has been declining. This trend encourages the export of sponge iron.
The issues of gas cutoff is more or less heard, but with the current market stagnation, it is unlikely that its impact will be the same as last year, especially since the price increase of the previous year was more affected by the currency price trend.
CBI average ex-rate for Steel Products (SANA): Rials 371,261 / 1USD
09 Oct 2023
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM