Billet
Billet price was
down during last week in Iran domestic market from USD 515/mt to USD 514/mt due to the stagnation of demand, but it
improved again over the weekend to USD 515/mt ex-work including VAT due to the
increase in the exchange rate.
Long
Products
Rebar market was downward like billet but its
demand shoratage was more obvious. Rebar average price dropped from USD 587 /mt
to USD 585/mt and Improved a little to USD 588/mt by Wednesday.
I-beam market followed
other steel products and declined from USD 683/mt to USD 674/mt ex-work
including VAT.
Flat Products
Mobarakeh Steel co HRC average price was
decreasing because the demand was downward and it was under pressure from the
supply side but HRC 2 mm thickness improved from USD 952/mt to USD 957/mt
during last week.
Oxin co HRP like other steel products, had a downward
trend from USD 865/mt to USD 852/mt, which was the result of weak demand.
The stagnant market of CRC did not change even
with the exchange rate change. Different number of suppliers
do not allow prices to changes. Its average price was
mostly at around USD 1099/mt ex-work including VAT.
HDG price was also stable at USD 1054/mt. Lack
of demand and quiet HRC market affected HDG market.
Weekly Analysis:
In the world market:
Global markets are still in the heat of the Gaza
war, oil price has not reacted seriously due to the events in Yemen and has not
yet reached USD 80 /barrel. In the next two weeks, the Chinese will crowd the market before
going on New Year holidays, after which the market will remain with the
forecasts of recession in 2024. Actually, the global
market is affected by the changes in the Middle East.
In the domestic market:
Apparently, export of pellets has been
restored, but it has not yet made an impact on the market because foreign
buyers are no longer very interested, it will take time for the market to
return to three months ago. DRI market is still facing supply shortage, but stagnation
of billet market does not allow it to improve. While rebar producers don't have
enough billet inventory, but liquidity restrictions have kept rebar and billet
market quiet.
Flat products market is also downward because
there is no demand. Iran Mercantile Exchange creates the biggest obstacle in
the way of the market and does not allow the commercial sector to buy anything
except rebar. As a result, the funds go to the property sector and the
steelmakers are operating with the lowest capacity. The continuation of this
condition will be aggravated due to the problem of rebar, sheet and profile
exports.
At the moment, in both domestic and world
markets, politics have the upper hand in any decision making, so market players
must be patient.
CBI average ex-rate for Steel Products (SANA): Rials 391,715 / 1USD
15 Jan 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM