Billet: Billet price in Iran domestic market fell slightly during last week due to stagnation and silence of the market.
Long Products
Rebar: Rebar price decreased slightly under the influence of market expectations for a decrease and weak demand.
I-beam: Despite weak demand, supply-side controls kept I-beam price down.
Flat Products
HRC: The drop in demand caused by the continued power shortage in the downstream sections caused a limited decline in HRC price.
HRP: Although HRP demand is weak, but stability of Oxin co supply caused its price to remain unchanged.
CRC: Quiet market along with supply of imported cargoes did not allow CRC price to change.
HDG: Fluctuating price of HRC was directly transferred to HDG market. There was no influencing factor on supply and demand in the market.
Weekly Analysis:
In the world market: Oil price is below USD 80/ barrel, which is affected by the global economic crisis. Europe has filled its winter gas reserves and there is no hope of increasing demand in the short term, the property market crisis in China does not seem to be ending. For this reason, cheap Chinese steel continues to flow to the world markets.
Only two factors can change the current situation. First, the end of the Gaza war and the return of hope to the markets of the Middle East. Second, the opening of the Iranian market.
Currently, it is a time of calmness in the markets, and during this time, innovation seeks to reduce costs. The best options are energy and AI. The longer the waiting time, the greater the technological gap between the developed and developing world.
In the domestic market: Finally the new government started working offically. The most important figure of the new government is the head of Planning and Budget Organization, whose very key policy is to reduce the budget deficit, which is the main cause of inflation. Hope has returned to the society and in the field of steel, the government's new foreign exchange policy and activation of currency return through the currency hall, give serious hope to export market for more improvements and and this will keep the market and does not allow a serious fall in prices.
Most of the downstream mills of flat products and rebar are facing the problem of raw materials purchased in July and August. These goods are traded at an average price close to today's rate, so despite the increase in supply, there is no possibility of a serious price decrease.
Generally, at the moment, the atmosphere of the society is hopeful and everyone is waiting for the end of the month of Safar and coming holidays.
CBI average ex-rate for Steel Products (SANA): Rials 448,881/ 1USD
26 Aug 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM