Billet piece remained stable until last Tuesday,
when base prices at IME (Iran Mercantile Exchange) decreased. This caused
billet price to fall from USD 631/mt to USD 619/mt ex-work including 9% VAT. Actually lower prices in world market made IME
base prices downward.
Average export billet price was changed
from USD 585/mt to USD 585- 590/mt FOB Iranian ports.
Rebar price was also unchanged till base prices of billet at IME
declined. Rebar average price decreased by USD 3/mt to USD 694/mt.
I-beam market also had some fluctuations but remained unchanged
at around USD 669/mt ex-work including 9% VAT by end of the week.
Two mm thickness HRC ex-work Mobarakeh was USD
1103 /mt on last Saturday, which reached USD 1094/mt by Tuesday. Mobarakeh HRC
market was faced with a drop in prices. High supply level of the mill, along
with falling prices and lack of demand, together made market quiet, but prices
have reached the bottom and traders are reluctant to discount more.
Oxin co HRP was at the bottom at around USD
1134/mt ex-work including VAT. There is no room to reduce its price more unless
the mill changes its selling prices. Kavian co HRP market was still managed by
the mill and price remained stable at USD 1068/mt ex-work including VAT.
CRC price was unchanged at USD 1288/mt
during the week. Traders are losing money and more decline in prices seems
unlikely unless Mobarakeh Steel co decrease its prices at IME.
HDG had a downward trend due to falling HRC
prices and severe market recession. It was down from USD1328/mt to USD 1317/mt.
Last week, average export price of slab
fell from USD630/mt to USD585/mt FOB Iranian Ports.
Economist are watching closely some events happening in domestic
and global markets. What happened in domestic market is that:
1- There is no obligation for exporters to
sell their export currency at a fixed rate. With this decision, deciding about
currency rate would be made in the market, which will have a direct impact on steel
2. Higher gas, electricity and water costs
and increase in the government's share of mining revenues, in next year's
budget, but which will traditionally affect prices from next month.
The above two factors will increase prices in
coming months and especially rapid rise of prices, from February onwards, but
the market will continue to stagnate due to:
1- Liquidity shortage due to lack of bank
2-Consecutive supply of steel products from
scrap to finished products, which has confused the market and caused a sharp
drop in demand. The current trend in the short term will cause a sharp decline
in demand. This will lead to lower prices on the one hand and lower production
due to lack of demand on the other hand.
CBI weekly average ex-rate for Steel Products (SANA): Rials 233,984
29 Nov 2021
Iran Steel News Bulletin