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Iran steel market Trend in Week 48th , 2020

Iran steel market Trend in Week 48th , 2020

Billet

As government’s controlling policy continued during last week in Iran, billet price, which was USD 373 /mt on last Saturday, reached USD 355/mt ex-work including 9% VAT  by  end of the week. The main reason for this downward trend was government policy, market confusion and expectations, and more importantly, depreciation of exchange rate.

Meanwhile, billet price reached USD 480/mt CFR Chinese ports due to seasonal demand. This is a good opportunity for Iranian exporters to increase billet export level due to lack of domestic demand. Besides, base price of DRI has reached below USD 226/mt and its demand is limited because billet production level has decreased.

The most important factor behind lower billet price is shortage of demand in long products market, which does not seem to return easily.

Long Products

Long products prices were declining following downward trend of previous three weeks. Average rebar price on last Saturday was USD 432 /mt and reached USD 409/mt by end of the week. Long products offered on IME had no demand on Wednesday, but on Wednesday afternoon, some traders decided to buy, which it prevented prices from falling. This is while the volume of billet produced and stocked in mills’ warehouses is high. If this condition continues, price trend will not be upward. Market participants at the moment prefer waiting policy, but this will end in lower market inventory.

Flat Products

HRC 2 mm thickness was down from USD 734 /mt ex-work Esfahan to USD 643/mt by end of the week. Mobarakeh Steel co HRC thickness 3 -15 mm also had a downward trend from USD 602/mt to USD 573/mt ex-work including 9% VAT. Market insiders believe that HRC price is near the bottom and downward trend would stop at least by end of current Iranian month ( mid-December), especially as export market sentiment is improving.

Oxin co HRP, which was USD 613 /mt on last Saturday, reached USD 603/mt ex-work including VAT by Wednesday. It is heard that Oxin co has exported 30,000 tons of its products, however, flat products market trend has also affected Oxin co HRP. Kavian co HRP, also declined from USD 565 /mt to USD 554 /mt by end of the week.

CRC market had a downward trend due to market closures and falling ex-rate, from USD 1031 /mt to USD 976/mt ex-work including VAT.

HDG price also fell from USD 253250 /mt to USD 231938 /mt, which was due to lower HRC price.

CBI weekly average ex-rate for Steel Products (SANA): Rials 256,728 USD

30 Nov 2020

Nov 30, 2020 16:58
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