Billet
Billet price increased
due to fluctuation of ex-rate, lack of supply and limited production of DRI, from USD 530/mt to USD 555/mt ex-work including VAT in
Iran domestic market.
Cancellation of
some transactions at IME ( Iran
Mercantile Exchange) market contributed
to this price increase.
Long
Products
Rebar price had an upward trend due to limited
supply of billet and higher ex- rate and changed from USD 600/mt to USD 620/mt
by end of the week.
Higher ex-rate made I-beam price improve by
USD 10/mt to USD 711/mt ex-work including VAT.
Flat Products
Mobarakeh Steel co average HRC price dropped from USD 1062/mt to USD 1050/mt
ex-work due to weak demand and supply of substitute goods.
Upward ex-rate and more importantly slab price
improvement, made Oxin co HRP rise from USD 889/mt to USD 902/mt by end of the
week.
Supply control and the increase in currency rate
made CRC price rise from USD 1120/mt to USD 1142/mt ex-work including VAT.
As the ex-rate increased, HDG price also
improved from USD 1081/mt to USD 1086/mt
by end of the week despite lower HRC price.
Weekly Analysis:
In the world market:
Oil price exceeded USD 80 / barrel affected by
political issues. Besides, its demand
is not very strong and the probability of returning below USD 80 is high. Iron ore, billet and
scrap markets have not changed significantly. China Lunar New Year is coming,
and that's why markets tend to be calm and quiet. Political issues,
especially the Gaza war and disagreement of some states with Biden in USA, have
attracted more attention.
In the domestic market:
Due to the lack of DRI, billet market has also faced limited supply, this has affected rebar production with
its supply level became limited. Besides, higher ex-rate also affected their
markets. As long as gas shortage at mills continues, this situation will
continue. Billet export market boom, weakens the possibility of a quick price
reduction.
The upward
trend in prices is not accompanied by demand. The market has not concluded that
the upward trend will continue as real demand is very limited. This process will continue until the election
next month. If the demand condition stay the same, only
the currency factor will be effective, and the political conditions, especially
the situation in USA and Gaza, can also influence market.
CBI average ex-rate for Steel Products (SANA): Rials 391,670 / 1USD
29 Jan 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM