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Iran Steel Market Trend in Week 26th, 2022

Iran Steel Market Trend in Week 26th, 2022

Billet

Billet price went down during last week in Iran domestic market from USD 584/mt to USD 565/mt ex-work including VAT by end of the week. The most important reason was the political debates resulting from Nuclear Talks, which practically closed the market and there was no interest in buying or selling. Global billet and scrap downward trend also contributed to the fall in our domestic billet market.

Long Products

With the political debates, rebar market started a downward trend from USD 694/mt to USD 677/mt ex-work including VAT. Lower prices in the world markets also fueled this trend.

I-beam price was almost stable because traders did not believe in reducing prices and accepting losses.

Flat Products

HRC market had a downward trend until Monday. Falling prices in the world markets, lower ex-rate and decreasing demand fueled this trend. Price of 2 mm thickness HRC ex-work Mobarakeh was USD 864 /mt on Monday, which did not change until Wednesday. The offered price of Mubarakeh steel at IME was considered as the minimum price and therefore the market welcomed it. The market trend was upward on Wednesday, but the weak demand will not allow this product price to improve unless global market trend is upward.

Until Monday, Oxin co HRP market had a downward trend, but after that, due to lower market inventory and mill’s supply management, price returned. It was up from USD 1011/mt to USD 1024/mt. The current market inventory, especially thickness below 30 mm, is very limited in the market.

Weak demand and lower ex-rate, made CRC price decrease from USD 1149/mt to USD 1139/mt. But this price reduction on Wednesday was faced with resistance of the sellers and caused the price to increase.

HDG had a downward trend and this downward trend continued due to weak demand and lower currency rate from USD 1141/mt to USD 1112/mt ex-work including VAT by end of the week.

Weekly Analysis:

Positive factors that affect the market at the moment are that:

1- Prices have reached the bottom. Last week, we saw that traders were not willing to sell their goods at a loss, and on the other hand, they did not show any desire to buy unless prices at IME drop dramatically.

2- Chinese market activity has started, the fall in the price of scrap has stopped, and this can have a strong impact on Iran market.

3- The recession of the last one month, along with the power cuts, has marked a sharp decrease in production, and this has caused a drop in market inventory.

Issues that have a negative impact on the market include:

1- Uncertainty of the market caused by the absence of the government's steel strategy.

2- Lack of construction budget and suspension of construction activities have reduced the demand to its minimum.

3-Lack of liquidity, which is quite evident in the market and has caused the size of the market to shrink.

CBI weekly average ex-rate for Steel Products (SANA): Rials 254,538/ 1USD

04 July 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Jul 4, 2022 14:55
Number of visit : 356

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