Billet
Billet price
increased during last week in Iran domestic market from USD 561/mt to USD 568/mt
ex-work including VAT thanks to the stability of currency rate and market
competition for sales of beginigng of the week and remained stable until end of
the week.
Long
Products
Rebar price increased with billet price
improvement and limited supply level, but market confidence disapeared by end
of the week. Its average price changed from USD 625/mt to USD 634/mt ex-work
including VAT.
I-beam price increased irrationally from USD 688/mt
to USD 715/mt as Esfahan Steel co stopped supplying.
Flat Products
HRC price increased thanks to market supply
management, but stopped by end of the week. Mobarakeh
Steel co average HRC 2 mm thickness price changed from USD 985/mt to USD 987/mt
ex-work including VAT.
Like other steel products, Oxin co HRP price fluctuation
calmed down at the end of the week. Its average price
changed from USD 891/mt to USD 907/mt.
After increasing in the first half of the week,
CRC market also weakened at the end of the week. Its average
price changed from USD 1150/mt to USD 1164/mt ex-work including VAT.
HDG market also experienced the same trend and
changed from USD 1112/mt to USD 1119/mt by end of the week.
Weekly Analysis:
In the world market:
Iron ore price has returned to USD120/mt cfr
China, scrap is around USD410-420/mt cfr Turkey and billet has dropped to
around USD 500/mt fob Black sea. Oil price is still below USD80/barrel and the
war in Gaza continues. China market opening after Holidays has not changed
demand level and prices may decrease more. Holy month of Ramadan is coming (begin
by March 12th ) and would have a serious impact on future of the
market. It has reduced demand expectations in Islamic countries.
In the domestic market:
Practically,
there is only a working week ahead of steel market as New
Year Holidays is coming and also elections are ahead, so there is no
opportunity for demand improvement. Besides, delayed supply of many mills and
delays in delivering cargoes has dimmed market appetite for more purchases.
Flat products
market is also affected by this trend, despite the fact that the supply of flats,
especially Mobarakeh Steel co products is limited, but its demand is also not
encouraging. The reality is that if supply level increases a little, prices
will drop drastically.
Demand outlook
for the end of the year is not strong and the market is practically closed in
the first month of next year due to Holy month of Ramadan, so the market is
quiet. Demand level would be practically zero in the
next month and a half, but production will continue.
CBI average ex-rate for Steel Products (SANA): Rials 395,055 / 1USD
26 Feb 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM