Billet: Billet price fell slightly, due to the sharp increases in previous weeks
and availability of delayed payment cargoes in the market at cash price.
Rebar: Lower demand weakened rebar market. There were no buying
interest while supply level was high.
I-beam:
Controlling the market by its leader did not allow I-beam price to change
while demand was weak.
Flat Products
HRC: The stagnant HRC market had no demand, but its price had
reached the bottom, and there was no possibility of further decline.
HRP: HRP price has reached its
bottom, the increase in slab price caused HRP price to rise over the weekend,
while its supply is also disrupted.
CRC: CRC price has bottomed, so its volatility
is very limited.
HDG: The stability of HRC price and market recession led to HDG
price stability.
Weekly Analysis:
In
the world market: Everything is calm in the global market, like
in previous weeks, oil market trend is stable, iron ore has not changed
significantly and remains at around $100, but scrap has dropped by about $20
and billet by about $10. Concerns about China's economic situation have
darkened the outlook for market recovery, and this trend is likely to continue
until the end of December. News indicates that the price of ingots in the Far
East has fallen due to Chinese offers.
In
the domestic market: IME
( Iran Mercantile Exchange) stopped billet trading for
traders, while its price had reached the peak and could not increase further.
Meanwhile, previous supplies had increased the gap between billet price in the cash
market and the stock exchange. In fact, this policy
prevented more recession and fall of billet price and gave producers an
opportunity to export. At the same time, the domestic market will avoid further
decline, but the rebar market will be affected. This policy will not allow rebar prices to fall, while
neither the mills have the power to purchase billet nor the market has the
power to absorb the high prices of rebar on the stock exchange, so the market
will go into a coma for a while to adapt itself to the new condition.
Last week there was news of an increase of more than 60% in electricity and
gas prices, while both are in the process of being cut off, on the other hand,
the European resolution was issued and the market is waiting for the exchange
rate to change. Another news is the launch of the currency exchange market in
January, which indicates the possibility of changing and increasing the
exchange rate.
The sum of all these factors indicates a change in rates. But it takes time and the increase in prices will cause a
recession. If the exchange rate does not increase, export market
will be grounded. Next year's budget, given its deficit and its sources of
supply, will lead to increased inflation if it does not have sufficient exports.
The steel market is far from last year's prices. Most mills are facing
inventory and price problems, so increasing prices is the only way left for the
finished product sector to fight the increase in raw material prices and costs.
The question is, does the market
have ability to absorb higher prices?? And to what extent?
CBI average ex-rate for Steel
Products (SANA): Rials 511,763/ 1USD
25 Nov 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM