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Iran steel market Trend in Week 45th , 2021

Iran steel market Trend in Week 45th   , 2021

Billet

Billet price had some fluctuations during last week in Iran but by end of the week stayed stable compared to beginning of the week. It was USD 551/mt ex-work including 9% VAT by Saturday, reached USD 560/mt by mid-week and finished it again at lower than USD 552/mt.

Higher base price at IME ( Iran Mercantile Exchange) made price upward but quiet rebar market made billet price down again. As DRI market is upward, market insiders believe there is no reason for downward trend in billet market.

Long Products

Rebar market experienced some fluctuations as started the week at USD 605/mt and finished it at USD 609/mt ex-work including 9% VAT. Rising prices at IME signaled an upward trend in the market, while cheap purchased parcels are in warehouses. We have to wait for the cheap inventories to be digested in coming weeks, while there is no guarantee that rebar price will not decrease.

I-beam market was also quiet as its price has reached the bottom. It changed from USD 585/mt to USD 590/mt ex-work including 9% VAT.

Flat Products

Two mm thickness HRC ex-work Mobarakeh on last Saturday was USD 960 /mt, which reached USD 971 /mt by Tuesday.  Mobarakeh HRC market was cold and its consumption has dropped sharply. We will soon see its HRC price rising because market disruption is already quite obvious.

Oxin co HRP remained almost unchanged at around USD 983/mt. The mill has filled export quota to Iraq for delivery within next two months and has closed some export orders to other countries, which are increasing. It is heard that its export price is USD 885/mt FOB Iranian ports for the last orders. Domestic market is quiet, so export market activity is rising.

Kavian co HRP remained stable at USD 917/mt. The mill is not yet active in export market and is controlling domestic market.

CRC price improved slightly from USD 1095/mt to USD 1106/mt by end of the week. It seems that new government controls is showing its effects on the market.

HDG market was quiet and changed from USD 1136/mt to USD 1139/mt.

Weekly Analysis:

The government has been trying for years to control the economy, but it has not been succeeded and will not as people’s interest and demand change but rules don’t. In flat products market, government control would make flat products be available to just who are accepted by the government, so in the near future we will see closure of many small units because this limits supply level and prices would increase sharply. Premium trading will start next week. These deals are very ambiguous and that is why suppliers seek to link their own supply and lock it in with raw materials. Does anyone know what the price of pellets or DRI will be in three months? If it is higher than today, what would market players do? The only conclusion is that the market will face two or more rates, and usually in these conditions the market tends to higher price. So the bottom line is that prices won’t decrease.

CBI weekly average ex-rate for Steel Products (SANA): Rials 270,717 USD

15 Nov 2021

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Nov 15, 2021 14:05
Number of visit : 281

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