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Iran Steel Market Trend in Week 27th, 2022

Iran Steel Market Trend in Week 27th, 2022

Billet

Billet price was downward during last week in Iran domestic market from USD 552/mt to USD 540/mt ex-work including VAT by end of the week. The reason was stagnation of long products market. Limited supply of billet on Tuesday along with the increase in its base price at IME by end of the week moved the market a little.

Long Products

Lack of demand made rebar price downward from USD 641/mt to USD 627/mt. Announcement of higher base prices at IME at the weekend improved market sentiment.

I-beam was like rebar quiet and dropped from USD 652/mt to USD 649/mt. On last Sunday, it was moved up to USD 661/mt due to higher ex-rate, but lack of demand caused price to return.

Flat Products

Price of 2 mm HRC ex-work Mobarakeh was USD 799 /mt on last Saturday, which reached USD 756 /mt by Wednesday. HRC price decreased due to lower prices in global markets and concerns about lower base prices at IME.

Oxin co HRP price was down by USD 8/mt to USD 936/mt due to higher supply of the mill and lack of demand.

CRC market was almost stable at USD 1044/mt during the week despite scarce demand level. Limited supply level helped market.

HDG market followed HRC trend and was quiet at USD 1039/mt ex-work including VAT.

 

Weekly Analysis:

Scrap and billet price has increased in world market which will improve prices in Iran market, but it depends on continuation of this trend. Russian dumping in the steel market continues and if prices rise, aggressive policy of the Russians in the steel market will intensify. Concerns about recession in many western countries, no improvement in China property market and continued heavy rains in the Far East indicate this. All governments are aware of this, that's why the Chinese government has set aside a part of next year's economic stimulus budget for this year. High steel inventory at Chinese mills due to limited of consumption during lock downs has caused a number of Chinese mills to undergo maintenance plans ahead of schedules. Apart from these, oil went below USD100 last week after 5 months, although it was temporary, but some negative forecasts talk about possible USD 67 for oil price in future due to possible recession in the West, even a more pessimistic analysis has stated USD47 also possible. Market current sentiment does not indicate that demand will rise unless Chinese market be activated in August. If oil price move downward, naturally, steel prices will also be downward in world and also Iran domestic market which would be very important for economic activists in Iran.

It should not be forgotten that the effect of lower price of oil and steel is very important in our foreign trade too, because it will reduce the foreign exchange income, as a result, currency rate will rise.

 In any case, recession would be the result of these events. Economic activists usually reduce transaction level in this situation and, more importantly, shorten the investment return period as much as possible. Finally, lower trade level, a drop in production and difficulty of many mills to survive would be the result.

CBI weekly average ex-rate for Steel Products (SANA): Rials 277,663/ 1USD

11 July 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Jul 11, 2022 11:19
Number of visit : 350

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