Billet
Billet price was almost stable during last week in Iran domestic
market. Average price was around USD 647/mt ex-work including 9% VAT. Higher prices at IME (Iran Mercantile
Exchange) made market a little excited, but weak demand returned prices back
again.
Long Products
Rebar price remained almost stable at around to USD 717-718 /mt
ex-work including VAT. Although there was a limited increase in the prices
announced on IME, but cheap purchases of previous weeks did not allow any
significant improvement in prices.
I-beam market remained almost unchanged from USD 695/mt to USD 689/mt.
Poor demand and enough inventory were the two main factors behind this stability.
Flat Products
Price of 2 mm thickness HRC ex-work Mobarakeh was USD 1136 /mt
on last Saturday, which reached USD 1144 /mt by Tuesday. Mobarakeh Steel co HRC
has reached its price floor due to higher supply level along with a sharp drop
in demand. Falling prices for this product can upset the market because it will
hurt market confidence. Weak demand is not letting prices improve.
Oxin co HRP price has reached the bottom, but enough inventory level
and lack of demand does not allow its price to improve. Kavian co HRP was still stable due to mill’s
market control at around USD 1076/mt ex-work including VAT.
CRC was stable at around USD 1283/mt due limited demand. Prices
do not have enough room to decrease, buyers are not interested too.
HDG was also faced with a slow market due to stability of HRC and
exchange rate and changed from USD 1312/mt to USD 1336/mt.
Weekly Analysis:
In terms of domestic market demand, it has been halted due to
various issues such as banking problems, change of managers, uncertainty about economic
plans of the government. Despite rising oil prices in world market, falling
Chinese demand has made prices unchanged or also downward. Therefore, any
change in Iran domestic market would be affected by just cost price. There are
talks about eliminating gas and power subsidies. This means at least ten
percent increase in price of finished products which would hurt Iranian export
competitiveness in global markets too. Besides, global recession and lower
export level will certainly affect currency rate.
In any case, at the moment enough inventory level at warehouses
along with lack of demand, will not allow prices to increase in coming days.
CBI weekly average ex-rate for Steel Products (SANA): Rials 230,689
USD
08 Nov 2021
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM