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Iran steel market Trend in Week 47th , 2020

Iran steel market Trend in Week 47th   , 2020

Billet

Last Saturday, average price of billet was USD 406 /mt, which reached USD 387 /mt ex-work including 9% VAT by end of the week, while DRI was offered at a base price of USD 233-235 /mt. Due to long products market downturn, billet demand was very low. On Tuesday, out of 94,000 tons of billet offered at IME, only 35,000 tons were sold and the rest were left without buyer. The latest price of Iranian export billet has been heard at USD 430 and its demand abroad is strong. Apparently, most mills have closed orders till January.

Long Products

Rebar price declined during last week from USD 480 /mt to  USD 451/mt by end of the week. Producers offered more than 169 000 tons of products, of which only 6700 tons of rebar and 286 tons of I-beam were traded. Iran rebar export price has reached USD 440 /mt FOB due to lower ex-rate and upward trend in global markets.

Flat Products

HRC 2 mm thickness was down from USD 827 /mt to USD 756/mt ex-work Esfahan  by end of the week. Thicknesses 3 -15 mm were also down from USD 646/mt to USD 622/mt ex-work including VAT by end of the week.

Oxin co HRP price decreased from USD 650 /mt on Saturday to USD 638/mt. With lower slab price at IME, HRP base price has also decreased, but it has not been purchased due to the market recession. Kavian co HRP price also followed the downward trend from USD 582/mt on Saturday to USD 578 /mt by end of the week.

CRC market was quiet with no interest in buying and declined from USD 1131/mt to USD 1047/mt by Wednesday.

HDG price also dropped due to lower HRC price from USD 1046 /mt to USD1017/mt ex-work including VAT.

There are two main factors in today's Iran Steel market:

First, the exchange rate with a strong rumor of its downward trend in future, in which case domestic steel prices should fall.

The second is Covid-19 pandemic, which will reduce demand with more closures.

CBI weekly average ex-rate for Steel Products (SANA): Rials 251,458USD

23 Nov 2020

Nov 23, 2020 17:28
Number of visit : 563

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