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.
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
I-beam price was
almost stable because traders did not believe in reducing prices and accepting
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
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
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
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.
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
CBI weekly average ex-rate for Steel
Products (SANA): Rials 254,538/ 1USD
04 July 2022
Iran Steel News Bulletin