Billet: Billet price
increased at the beginning of the week due to increased demand on the stock
exchange, but the market stagnated after the price increase.
Long Products
Rebar: Rebar market has been on a steady trend, supply
problem is becoming more serious every day, but demand is not responding.
I-beam: Lack of demand made I-beam market downward.
Flat Products
HRC: Weak demand and competition from small units,
which are increasing every day, have increased supply and caused HRC price to drop.
HRP: Limited demand made Oxin co HRP downward.
CRC: CRC price has reached the bottom level but
demand is still weak.
HDG: Like
other flat products, HDG is facing a market and demand slump, but it does not
have the potential for a price drop.
Weekly Analysis:
In
the world market: The global markets were on New Year's holidays, and
prices are naturally quiet. The developments in Syria and the peace talks in
Gaza promise an increase in demand in the second half of the year. Of course,
if all political factors remain the same, we should not ignore Trump's effect,
because with the possibility of peace in Ukraine, many of the existing factors
will be disrupted.
Iran's
introversion, along with the extroversion of the Arabs and Turkey, will play a
new role. What is important is not the end of the war in the Middle East, but
the question is which region of the world will now be involved?
In
the domestic market: Prices on the stock exchange have
reached the bottom. Finally, prices in the market have reached their bottom
while the market is in recession and there is no demand, but there is no
possibility of reducing prices for the mills too.
What
causes the possibility of a price increase are two factors:
First,
the problem of providing working capital, which intensifies at the end of the
year, as a result of which production and supply are reduced.
Second,
the issue of increasing costs, which again increases prices.
The
stagnation in demand causes a decrease in production volume and a shift in the
break-even point, which will also affect the final price.
In
the meantime, a decrease in the exchange rate means a shock to production and
exports. What production needs is stability, not an increase or decrease.
Banks
play a decisive role in the continuation of production today. If credit becomes
more limited, production problems become more complex.
CBI
average ex-rate for Steel Products (SANA): Rials 655,772/ 1USD
06 Jan 2025
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM