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Iran steel market Trend in Week 47th , 2021

Iran steel market Trend in Week 47th   , 2021

Billet

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.

Long Products

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.

Flat Products

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.

Weekly Analysis:

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 prices too.

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 credits.

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 USD

29 Nov 2021

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Nov 29, 2021 15:05
Number of visit : 619

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