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.
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.
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.
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
Iran Steel News