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Iran Steel Market Trend in Week 17th, 2022

Iran Steel Market Trend in Week 17th, 2022

Billet

Billet price was almost stable during last week in Iran domestic market. There was a slight increase over the weekend due to exchange rate fluctuations. It was up by just USD 0.50/mt to USD 642.5/mt ex-work including VAT by end of the week.

Also last week, according to Metal Bulletin, average price of Iranian export billet decreased by USD 20/mt to USD 663/mt FOB.

 

Long Products

Rebar had a stable market within USD 723- 725/mt. The market is stuck between IME prices and limited demand and inventory.

The problem of demand for I-beam continued and did not allow prices to improve. It was down from USD 668/mt to USD 667/mt ex-work including VAT by end of the week.

Flat Products

HRC 2 mm thickness ex-work Mobarakeh was USD 997 /mt on last Sunday, which reached USD 980 /mt by Wednesday. The downward trend is the product of weak demand and market concerns about further price reductions. A number of Mobarakeh steel co customers send their inventories to the market to gain liquidity, and this has led to a downward market.

Oxin co HRP price was unchanged at USD 1083/mt as the market price is close to the mill’s purchase price so no further reduction is possible.

Lack of demand made domestic CRC market downward from USD 1196/mt to USD 1191/mt during last week in Iran.

HDG market remained stable at USD 1197/mt ex-work. Lower HRC price was offset by an increase in the price of zinc, but there is a stagnation in this product market too.

Weekly Analysis:

Oil prices is fluctuating around USD 100 per barrel and there is no prospect of more reduction, so cost price of goods and freight rate has remained stable. China Covid pandemic has spread so global demand has declined. Global steel price bubble caused by the Ukraine war is draining and prices are approaching their logical limit. Whenever the pandemic is resolved, Chinese demand will shake the market again. In Iran, export billet price has decreased, but regardless of Iran billet price, due to the higher supply than demand, billet and especially slab must be exported. The market has pursued a policy of wait and see, and this has led to a deep retreat of demand until the price reaches its bottom. Unless something special happens, such as a power outage. The declining demand will cause a problem for the mills. Power outages contribute to this problem. However, given the global situation and the confusion at home, the market needs to breathe. This break will put price, demand and supply in place.

What has been predicted in the previous weeks is becoming true.

 

CBI weekly average ex-rate for Steel Products (SANA): Rials  246,797 / 1USD

01 May 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

May 1, 2022 10:09
Number of visit : 271

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