Billet price started to decline slowly during last week due to market confusion
and hope of lower prices, from USD 649/mt to USD 645/mt, but finished the week
at USD 649/mt, lack of interest in purchasing DRI was also another sign of
Also last week,
according to Metal Bulletin, average price of Iranian export billet decreased
from USD 682-695 /mt to USD 683/mt FOB.
Expecting downward trend slowed down upward trend of rebar. Its price at
IME is still higher than spot market, and this led to the non-acceptance of rebar
sale at IME. Spot price changed from USD 734/mt to USD 732/mt ex-work including
I-beam market started the week at USD 663/mt, experienced some fluctuations
and finished the week at USD 670/mt ex-work including VAT.
HRC 2 mm thickness ex-work Mobarakeh was USD 990 /mt on last Monday, which
reached USD 999/mt by Wednesday. Thicknesses 3 -15 mm had a downward trend due
to lack of demand. Lower slab price in global markets strengthened expectation
of lower domestic prices.
Oxin co HRP had a slow market and its new price came to support the market.
Its average market price changed from USD 1098/mt to USD 1094/mt.
CRC was almost stable during the week at USD 1104/mt, higher supply from
Mobarakeh Steel co by end of the week made price down to USD 1085/mt.
Lower HRC market made HDG also downward from USD 1220/mt to USD 1207/mt
ex-work including VAT.
The market was still
shocked after announcement of export taxes. Generally, market was quiet and silent as Religious
Mourning Holiday was also coming. There was no buyer in the market. This market
trend was contrary to the upward trend at IME. This week, prices at IME will
decrease and will cause a severe recession. In the world market, prices are
falling and this issue has concerned traders not only in Iran and all over the
world. The main reason for this is two factors. The first is the spread of the
pandemic in China and the second, supply of cheap Russian products in global
This will end in
lack of interest in domestic market. As a result, producers will face liquidity
problems. The liquidity problem will force them to give points to buyers, so
the price trend will be downward until producers reduce production level. In
this case, prices would go up again.
Current market sentiment
will be disrupted by several factors:
The first one would be opening of Chinese
market which as seen before, end in higher demand and rising prices.
The second factor
that changes market condition is power outages in the coming months, which will
lead to a sharp decline in production and supply of goods.
The third is the
transportation problem, which is quite serious these days, and if the
north-south corridor become activated, the problem will become more catastrophic.
It should not be
forgotten that the recession in the domestic market will lead to an increase in
exports, and this will help balance supply and demand level. In the event of power
outages, supply will actually lag far behind demand.
Iran steel market
has become very sensitive, which is why its reaction time has been shortened. Government's
efforts to calm the market will not be succeeding without consultation and
cooperation of producers.
CBI weekly average
ex-rate for Steel Products (SANA): Rials 244,342/ 1USD
25 Apr 2022
Iran Steel News