Billet: Billet price in Iran domestic market rose with the increase in exchange
rate and soared with rumors about future gas cuts.
Long Products
Rebar: The rise in ex-rate caused price of rebar to increase,
but demand was weak.
I-beam: I-beam price also changed only due to the impact of
currency fluctuations.
Flat
Products
HRC: Exchange rate fluctuations caused HRC price to soar while
demand was weak.
HRP: HRP market also improved just due
to ex-rate increase.
CRC: currency rate upward trend made CRC
increase.
HDG: With the increase in HRC price and exchange
rate, HDG price also increased.
Weekly Analysis:
In the world market: There is no new
news in the global markets, billet and scrap have not changed, oil is still
hovering below USD80/barrel, the war in Ukraine and Middle East continues as it
is, the outlook for Chinese market and its economic growth next year is not
very optimistic, it seems that everything will come down to USA election, which
will determine the fate of many political issues and, subsequently, global
economic plans.
In
the domestic market: Two issues have completely affected the domestic market.
First, political issues that have destroyed the incentive to invest and
completely replaced caution, and in these circumstances, capital is attracted
to foreign exchange or gold. Warehouses are empty, factories cannot sell their
product, while export of billet and slab is completely justified. When the
political issue is resolved, which is not far off, the market would be empty of
semi-finished and finished steel products, and the demand for foreign exchange would
be high because traditionally, governments have currency problems from December
onwards.
Second, the gas problem affects the production of DRI and billet. It is
said that the gas problem is more serious this year than last year. This will
reduce the volume of production. Naturally, prices will increase. This year is
not a normal year, considering the US election, Israeli assassination, and
structural problems in the Iran economy. Apart from these, there is next year's
budget issue too.
CBI average ex-rate for Steel
Products (SANA): Rials 486,294/ 1USD
28 Oct 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM