Billet price was almost the same as beginning of the week
by end of last week in Iran at USD 707/mt ex-work including 9%VAT. Despite
continuing power outages and rising exchange rate, IME ( Iran Mercantile
Exchange) attempts to control the
market, along with export restrictions and falling prices in the global market,
were factors that led to market stability.
Rebar market continued to be uncertain and quiet.
It started the week at an average of USD 775/mt and ended it at USD 773/mt. This quiet sentiment has been extended to
production too. Many mills are faced with this problem due to lack of support
from billet market.
I-beam market was almost stable with its average price
changed from USD 752/mt to USD 741/mt by end of the week. Esfahan Steel co with
its offers at IME ( Iran Mercantile Exchange) showed that prices won’t decrease within next two
Two mm thickness HRC
was USD 1265/mt ex-work Mobarakeh on last Sunday, which reached USD 1270 /mt by
Wednesday. HRC market is heavily influenced by Mobarakeh Steel Co policies.
Limited supply from the mill has kept the market waiting while demand is weak
and the market cannot afford existing prices. Global market downward trend and
falling slab prices are fueling speculation that prices may fall in near future.
Oxin co HRP was
upward from USD 1293/mt to USD 1303/mt. Factors behind this increase were lack
of supply from the mill due to power outages and announcement of the base price
of USD 1021 /mt by the mill. But the most important factor is the mill’s
five-month delivery time, which stabilized the market and did not reduce its
price. Kavian co HRP market is still being controlled by supply management,
while power cuts have severely affected supply level. It was changed from USD 1064/mt
to USD 1073/mt ex-work including 9%VAT.
Limited supply made
CRC price improved a little from USD 1356/mt to USD 1362/mt.
HDG market had a
steady trend and did not show a serious change following the increase in ex-rate
and HRC price trend, which is due to weak demand. By end of the week it stayed
around USD 1388/mt ex-work including VAT.
At the moment steel
demand in Iran is hopefully awaiting the decisions of new government. But the supply side is waiting
for power cuts problems and worried about the reactivation of crypto currency miners.
The government must create a logical way to balance exports and imports, which
is not the problem. Hope of a change in foreign policy can be the beginning of
a new economy. Today market is strongly affected by politics. We have to wait
for the coming months until the clarification of business conditions, but prices
have reached their ceiling as it is the signal that global markets gives us.
average ex-rate for Steel Products (SANA): Rials 228,402 USD
Steel News Bulletin