Billet
Billet price increased during last week in Iran domestic market from
USD 565/mt to USD 588/mt ex-work including VAT due to higher ex-rate and improvement
in demand.
Long
Products
The rise in currency price and supply
restrictions both made rebar price increase from USD 632/mt to USD 653/mt
ex-work including VAT.
I-beam market also had an upward trend like
rebar and increased from USD 753/mt to USD 793/mt by end of the week.
Flat Products
HRC price increased due to higher ex-rate and
year end improvement in demand. Mobarakeh Steel co HRC 2 mm thickness average price
changed from USD 982/mt to USD 1020/mt ex-work including VAT.
Higher ex-rate also affected Oxin co HRP price
and its average price rose from USD 900/mt to 921/mt
ex-work including VAT.
CRC market faced turbulence due to the
confusion of currency market and changed from USD 1153/mt to USD 1192/mt by end
of the week.
Higher ex-rate along with the increase in HRC
price caused HDG price rising from USD 1108 /mt to USD 1131/mt .
Weekly Analysis:
In the world market:
Price of scrap, iron ore and billet has been
downward, oil is hovering around USD 80/ barrel and funds have gone to
cryptocurrencies. The rise of Bitcoin means concern about the economic
stability in the world and it shows that the US sanctions have found an escape
route, as long as the sanctions against Iran and Russia continue, demand for
exchange with cryptocurrencies will increase. Greedy investors also intensify this trend, so
the rise in the price of digital currencies has helped the countries under
sanctions. The outlook of the world steel market is facing weak demand, so we
should wait for the prices to reach their bottom soon.
In the domestic market:
Currency rate was the main driver of Iran
domestic market in the previous week, in the situation where most of mills were
facing with billet shrtage, while many of them are facing gas and production
problems too. But there are practically ten days left until end of the year in
Iran and the delivery of delayed orders is still not finished.
Apparently, the government doesn't want steel
price to rise, but it doesn't know how to do it. News indicates construction plans improvement
in the coming year. It has to be seen what solutions about the energy market
the government have in mind with the
increase in its demand and power outages and rising wages in the next year. In
any case, there is no room for trading in the next two weeks to see further
price increases.
CBI average ex-rate for Steel Products (SANA): Rials 395,055 / 1USD
04 March 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM