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