Billet: Billet price increased slightly due to lower
supply level during last week in Iran domestic market.
Long Products
Rebar: With the increase in billet
price, rebar price also went up.
I-beam: With supply management and
improvement of market sentiment, I-beam demand also increased.
Flat Products
HRC: Power cuts have reduced HRC demand, while its price is
at the bottom. Average market price was also downward.
HRP: Lower supply
level helped HRP market and price improved.
CRC: CRC market has
also reached the bottom, but power cuts has questioned consumption level.
HDG: The weak HDG market did
not fluctuate while its price has reached the bottom level.
Weekly Analysis:
In the world market:
Oil pricwe has not changed, it is still below USD 80/
barrel, billet price has remained stable in the world market, as the summer
vacations shows its effect in the markets. The war in Gaza has become erosive and there are rumors
of its expansion to Lebanon.
For now, everyone is
waiting. The
only place in the world that can change the demand on a mass level is Iran,
which is waiting for the election of new president. Iran's role can be like that of China after the Vietnam
War, which changed the world by opening up to the world.
In the domestic market:
Power cuts has affected
Khuzestan steel co production level, and as a result, supply of semi-finished
steel is being questioned. It has been heard that import of electricity from Armenia
and Turkmenistan is being investigated.
The problem of liquidity
has become a serious issue for Iran's economy. Production is not affordable with a lack of money or an
interest rate above 40%. Either the interest rate should be reduced or the export
exchange rate should be changed, for both of which we should wait for the new
president. The
problem of reducing exports has become very serious, a 70% reduction will
increase domestic supply, while the exchange rate issue is the next consequence.
CBI average ex-rate for Steel Products (SANA): Rials 422,669 / 1USD
16 June 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM