Billet: Billet price was stable, weak demand for long products caused a drop in inquiries, a heavy supply coupled with delivery delays from some mills contributed to the decline in demand.
Long Products
Rebar: Limited demand made rebar market downward.
I-beam: I-beam demand was weak, so supply management raised its price over the weekend.
Flat Products
HRC: HRC price rose due to Mobarakeh Steel co management at IME ( Iran Mercantile Exchange).
HRP: HRP demand was weak, but its price has reached the bottom and is unlikely to fall.
CRC: Only the change in the Mobarakeh Steel co CRC rate caused its price to rise while demand was quiet.
HDG: The increase in HDG price was affected by higher HRC rate by Mobarakeh Steel co.
Weekly Analysis:
In the world market: Billet and scrap price faced a limited decline, but prices have bottomed. The global market is waiting for China's plan which has reduce production due to demand problems. Oil price entered the USD80/ Barrel channel on Friday, but this is due to political issues, not demand, so it cannot be sustainable. Chinese Lunar New Year holiday is approaching, so the hope of improving demand untill the Chinese holidays is futile.
In the domestic market: In the flat products sector, prices on the stock exchange increased with the Mobarakeh Steel co plan and the mill’s premiums also changed. This method works to compensate for the losses caused by power cust and lack of demand, but downstream industries do not have the strength to withstand this change in the short term, given the current recession and weak demand.
In Long products market, billet price has remained stable and demand for longs is also stagnant. Billet export has decreased by 36 percent and slab by 16 percent, and the government is putting pressure on the problem of this sector by restricting the stock exchange. Experience has shown that whenever exports have declined, prices have increased in the stock exchange.
The exchange rate has increased in recent days, part of which is related to the issues caused by the arrival of Trump, but another part is related to government policies that do not allow capital to enter easily by pursuing a money laundering policy.
CBI average ex-rate for Steel Products (SANA): Rials 661,234/ 1USD
13 Jan 2025
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM