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Iran Steel Market Trend in Week 24th, 2022

Iran Steel Market Trend in Week 24th, 2022

Billet

Billet price was on the rise, affected by power cuts and higher ex- rate by USD 3/mt to USD 670/mt ex-work including VAT. Cancellation of some transactions at IME has arose expectation of some changes in coming days. If billet price continues to rise, DRI price will be also upward.

Long Products

Rebar price increased during last week in Iran domestic market by USD 10/mt to USD 751/mt ex-work including VAT and base price of USD 717 /mt was almost stabilized. Talks about cancellation of rebar deals at IME on Wednesday showed that spot market does not follow the stock market. If the deals were canceled, prices would go up. Failure to cancel the transactions helped keep prices in the market.

I-beam price had an upward trend due to market inflationary expectations from USD 695/mt to USD 709/mt.

Flat Products

Price of two mm thickness HRC ex-work Mobarakeh on last Monday was USD 995 /mt, which reached USD 936 /mt by Wednesday. Severe weakness of demand along with the supply of Mobarakeh steel co contributed to this trend.

Oxin co HRP market was faced with a price increase from USD 1026/mt to USD 1046/mt. Scarce availability of sizes 10 - 20 mm and empty warehouses made prices upward.

Domestic CRC market experienced a relative increase from USD 1164/mt to USD 1174/mt, which was mostly affected by ex-rate fluctuations. This product demand is still weak due to lower seasonal consumption and power cuts.

Despite lower HRC price, HDG had an upward trend from USD 1175/mt to USD 1199/mt by end of the week, which was affected by the rise in currency rate and its impact on zinc price.

Weekly Analysis:

World steel market is not in a favorite trend at the moment. China Covid Restrictions has resumed, Russian dumping has kept price of billet and slab low, and this has affected scrap price too. Rising inflation rate in Europe and the United States has caused recession in these countries, and summer vacations in the West are deepening the recession. In the Far East, effect of Chinese market and rainy season will keep demand low. What does not allow prices to fall in the world market is oil price which remains high.

 But in Iran market, China recession and Russia dumping have stopped price increases. What affects Iran market is, ex- rate and power cuts that has reduced supply. Maybe the government will try to lower prices at IME by different policies but it will cause more recession, which will naturally lead to a decline in production level.

CBI weekly average ex-rate for Steel Products (SANA): Rials 251,133/ 1USD

20 June 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Jun 20, 2022 12:50
Number of visit : 191

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