Billet: Due to needs of re-rollers, billet price was almost stable, but demand is generally weak and the market hopes for an increase in supply and a further decrease in prices.
Long Products
Rebar: Rebar price was almost stable, power cuts and limited supply caused this stability of the market.
I-beam: Despite weak demand, supply problem stabilized I-beam market.
Flat Products
HRC: HRC market didn’t change as the pressure of imported cargoes does not allow a serious change in the market.
HRP: Despite limited supply level, speculations along with stagnation of demand did not allow oxin co HRP price to change.
CRC: Energy supply problems and seasonal recession made CRC market almost unchanged.
HDG: Weakness of HRC market lowered HDG market a little.
Weekly Analysis:
In the world market:
Oil market has taken a downward trend along with the reduction of activities in China, which has reduced its export billet to USD 465 /mt CFR Far Eastern ports. Its HRC price has reached USD 475 /mt FOB Chinese ports.
The Gaza war negotiations have started and it seems that due to the fear of Iran's attack and the spread of conflict in the region on the one hand and Israel's internal problems, these negotiations must come to a conclusion, in this case, whether Iran attacks Israel or not, it has proven itself as the superior power of the region. The result of this situation would be calmness of the region and possibility of activation of the economy and investments. But these events need at least one year's time, of course, if the political infrastructure is ready.
In the current situation, downward trend of prices in world market will continue due to the global recession, although the amount of reduction would not be high because it is close to the finished price, but the recession will reduce transactions and increase caution in the market.
In the domestic market:
DRI demand is still weak and not fully sold, billet faced an increase in supply, but credit supply was welcomed, the rest went in matching, which shows lack of money in the market. Supply of rebar is still limited due to power cuts and billet shortage. Imported carges of flat products also has affected domestic market but due to power shortage importing is inevitable.
In the current condition, the market would be in waiting mood until the mourning ceremonies of Arba'in end, till then power shortage problem will be clearer and the new president cabinet will be determined, but the most important point is the issue of Gaza war.
Market outlook is promising. Besides, role of currency rate is an effective factor as once the problem of electricity is solved, mills will look for increasing export level.
CBI average ex-rate for Steel Products (SANA): Rials 447,597/ 1USD
19 Aug 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM