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Iran steel market Trend in Week 49th , 2021

Iran steel market Trend in Week 49th   , 2021


Billet market had a steady trend during last week in Iran at around average of USD 597/mt ex-work including 9% VAT. Lack of activity in rebar market and DRI price control at IME (Iran Mercantile Exchange) were the reasons behind this stability. However, there are rumors about lower supply of billet out of IME and possibility of its higher price. The main reason for any decline in production would be recession of rebar market.

According to Metal Bulletin, average export billet price dropped by USD 5 /mt to USD 560/mt FOB Iranian ports.

Long Products

Rebar price tended to increase by beginning of the week as market inventory has decreased but market control and lower price at IME, made it downward.  Firstly, improved a little by USD 1/mt to USD 679/mt and moved back again to USD 678/mt ex-work including VAT by end of the week.

I-beam started the week well and was up from USD660/mt to USD 666/mt, but the announcement of new prices at IME stopped the market and price returned to USD 661/mt.

Flat Products

Two mm thickness HRC ex-work Mobarakeh was USD 1071 /mt on last Saturday, which reached USD 1067/mt by Tuesday. Mobarakeh Steel co HRC had a stable trend generally. Besides, extremely low consumption and low profit margins have made market quiet, and rumors of higher supply level will make demand more backward.

Oxin co HRP has remained at the bottom. Despite sharp decline of slab and HRC in global markets, the mill is committed to the offered prices of a few months ago, so buyers profit margin is minimized and not willing to buy from the mill. Market price changed from USD 1117/mt to USD 1123/mt ex-work including VAT. Kavian Co continued to keep its HRP price stable at USD 1054/mt.

Limited supply level made CRC price increase from USD 1256/mt to USD 1271/mt.

HDG had a steady trend at USD 1308/mt due to stability of HRC price and sluggish demand.

Weekly Analysis:

In world market, oil and gas prices are not skyrocketing any more. Commodities have a hot market just in the USA, driven by inflationary concerns. Price of billet and slab is declining due to weak demand. Christmas and New Year Holidays are approaching in the world market, followed by the Chinese New Year Holidays. In general, global market is stable and calm due to the holidays and concerns about China's economic growth. While prices have reached their bottom.

But in the domestic market, government interventions through IME has exhausted market players and signs of decline in production has appeared, which is due to controlling prices by authorities on the one hand and lack of demand on the other hand.

In this situation, the worst thing is about currency rate, which if decreases, market will go into a recession. Usually by end of each quarter, exchange rate rises and falls. So we have to wait and see the end of this season, which has two serious scenarios with itself too. The first one would be a sharply contractionary government budget and the second one is Nuclear Negotiations.


CBI weekly average ex-rate for Steel Products (SANA): Rials 237,171 USD

13 Dec 2021

Iran Steel News Bulletin



Dec 13, 2021 15:11
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