Billet: Higher DRI price made billet price upward during last week in Iran domestic market. Over the weekend, availability of cheap purchased billet from previous weeks and stagnation of long products market caused billet price to drop.
Long Products
Rebar: Rebar price remained stable despite muted demand, due to cost pressures.
I-beam: I-beam price decreased due to a drop in demand.
Flat Products
HRC: Supply of Mobarakeh steel co reduced market price trend, but it returned to its previous level by end of the week.
HRP: The upward pressure of slab price prevented HRP price from falling until end of the week, but market broke over the weekend as demand was weak.
CRC: CRC market hold back as Mobarakeh Steel co offers were available but returned again by end of the week.
HDG: HDG market remained stable because it could not decline due to rising costs and finished prices.
Weekly Analysis:
In the world market: Oil price is on a downward trend, probably falling below $70 despite the cold season, because the market is facing a surplus of about one million barrels. Naturally, billet price will fall below USD430/mt, as it is already close to this number. Slab is also affected by this trend, and flat products price is on a downward trend too.
It does not seem that results of China's stimulus actions will be seen in the world market this year. The shadow of Trump's plan has caused the markets to wander, and everyone is somehow waiting for a change of management in the United States.
In the domestic market: The domestic market is still in recession, the problem of liquidity and demand rules the market, while production has decreased due to power and gas problem. The two factors of increasing costs and decreasing production raise the cost price. Production side is the victim of this condition. Demand will not return unless exchange rate changes.
CBI average ex-rate for Steel Products (SANA): Rials 500,440/ 1USD
18 Nov 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM