Billet
Lower supply and higher ex-rate made billet
price up from USD 515/mt to USD 522/mt ex-work including VAT in Iran domestic
market.
Long
Products
Limited billet availability and higehr ex-rate
made rebar average price rise from USD 589/mt to USD 594/mt by end of the week.
Higher ex-rate made I-beam demand rise and its
price improved by USD15/mt to USD 692/mt ex-work including VAT.
Flat Products
Mobarakeh Steel co HRC 2mm thickness price increased
by USD 5 /mt to USD 975/mt ex-work Mobarakeh inclduing VAT during last week in
Iran domestic market. The rise in currency price increased price of HRC. But the problems
that occurred for some LCs and the need for liquidity made market returned.
HRC market situation affected Oxin co HRP
price too and it changed from USD 863/mt to USD 866/mt by end of the week. By
middle of the week it rose to USD 871/mt and then returned.
CRC market was messed up, the increase in
exchange rate and supply limitations caused its price to rise from USD 1108/mt
to USD 1120/mt by end of the week.
Despite the decrease in HRC price, higher
ex-rate and upward zinc price made HDG improved froom USD 1059/mt to USD 1076/mt
ex-work including VAT.
Weekly Analysis:
In the world market:
Oil price is still below USD 80/mt despite the
continued tensions in Red Sea. Iron ore reached USD
128/mt CFR China with a slight decrease. Scrap price is USD
425/mt CFR Turkey but billet fob Black sea has remained almost the same. Global markets do
not know about consumption growth and this year's demand will probably be less
than the previous year or the same. It does not seem
that global markets situation will change seriously until the end of the Gaza
war. If the market returns to normal conditions, investors will be
hopeful, especially in Arab countries that have a lot of money. For now, as the
previous weeks have passed, we have to wait for the outcome of this war.
In the domestic market:
DRI supply
level in the domestic market has reached the bottom. In the previous week, billet supply in spot
market was very limited and its price improved due to the supply problem and higher
exchange rate. This problem was well seen in the stock market transactions. This trend will be more or less followed in
the coming weeks because billet export orders are currently keeping the mills busy.
Regarding flat
products market, it shows a different perspective. The sharp increase in prices
along with the weak demand caused orders to fall back. On the other hand, it has been heard that some
traders have turned to the supply of goods due to the delay of LCs, this has
caused the prices to fall. If this problem is not solved, it may spread
to long products market too. Finally, the problem will manifest itself on a
wider level in the banking network, where the government's intervention would
be required. The market will probably experience different sentiments
in the coming weeks.
CBI average ex-rate for Steel Products (SANA): Rials 391,679 / 1USD
22 Jan 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM