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Iran Steel Market Trend in Week 21st, 2022

Iran Steel Market Trend in Week 21st, 2022

Billet

Billet price had a downward trend last week in Iran domestic market from USD 654/mt to USD 650/mt ex-work including VAT, which was affected by the condition of rebar market, as well as mental atmosphere of the market, which is expecting prices to fall at IME (Iran Mercantile Exchange) due to global downward prices. What is remarkable is the relationship between oil and billet price. Usually, one ton of billet is equal to minimum 5 barrels and maximum 8 barrels of oil which today this equality is at its minimum. Therefore, likelihood of further decline in global prices seems weak.

Long Products

Rebar prices fell a little from USD 747/mt to USD 738/mt due to market expectations. This expectation is so strong that less than 5% of the offered rebar at IME was being traded. Of course, many mills take advantage of the market silence and announced their supply level at IME more than their capability just to meet their commitment.

I-beam price has reached the bottom and despite the fact that demand is limited, downward trend in prices is not significant. It was down from USD 692/mt to USD 676/mt ex-work including VAT.

Flat Products

Price of two mm thickness HRC ex-work Mobarakeh was USD 985 /mt on last Saturday, which reached USD 964 /mt by Wednesday. Mobarakeh Steel co supply trend has lowered prices, but declining traders' profits and weak demand have kept prices low.

Oxin co HRP price in spot market is very close to mill’s cost price. Most traders try to avoid inventory of this product. This situation if continue will change prices. Market average price changed from USD 1081/mt to USD 1071/mt.

CRC demand has sharply decreased. Part of this is due to the beginning of the seasonal recession of this product. On the other hand, the decline in car production has also had a negative effect on demand of this product. Its price was down from USD 1222/mt to USD 1208/mt.

Lower HRC price made HDG market down from USD 1221/mt to USD 1208/mt.

Weekly Analysis:

Issues that are keeping the market waiting include seasonal recession and market confusion, much of which is due to IME and global market policies.

Factors that make the market move are global market price trend, which seems to have reached its bottom and will improve from recession with China opening. The second one is issue of power cuts, which apparently has started. Third one is demand level, which will show itself on base prices at IME when global prices stop declining. If prices stop decreasing, warehouses will be activated and if the power cuts become serious, it will stimulate more buying interest.

There are conflicting reports being heard from Nuclear Talks, but Russia's attack on Ukraine seems to have multiplied the equation, so the market is not expected to be affected by the nuclear talks in the near future unless something special happens.

CBI weekly average ex-rate for Steel Products (SANA): Rials  242,618 / 1USD

30 May 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

May 30, 2022 15:03
Number of visit : 430

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