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Iran Steel Market Trend in Week 28th, 2022

Iran Steel Market Trend in Week 28th, 2022

Billet

Billet price was stable during last week in Iran domestic market. Mid-week holiday, along with stagnation of long products market, did not allow billet price to move. Higher base price at IME (Iran Mercantile Exchange) created a little movement in the market by end of the week and some hopes for coming days in the market. Price changed from USD 578.5/mt to USD 579/mt ex-work including VAT.

 

Long Products

Rebar price went down from USD 675/mt to USD 667/mt by end of the week. Despite some price improvement at IME, weak demand did not motivate the market. Lack of demand will continue to put pressure on the market.

Limited supply level made I-beam average price went up from USD 690/mt to USD 720/mt, but no serious change was seen in the volume of transactions.

Flat Products

Two mm thickness HRC ex-work Mobarakeh was down by USD 19 /mt on to USD 788 /mt by last Wednesday. Scarce demand, along with concerns about a serious decrease in the mill’s next offers, has caused traders to withdraw from the market.

For Oxin co HRP, the mill controlled supply level and this made market almost stable. Average market price declined from USD 1005/mt to USD 998/mt ex-work including VAT.

Due to lower demand caused by power cuts in consuming industries and start of summer holidays in the demand sector, CRC price was downward from USD 1117/mt to USD 1111/mt.

HDG price changed from USD 1109/mt to USD 1102/mt. Lower HRC price did not have a serious impact on its price.

 

Weekly Analysis:

In global markets, Russian dumping has almost faded, as seems that prices have bottomed. Scrap and billet price have slightly improved recently, and this made Iranian mills able to sell around 80,000 tons of billet at USD 520/mt FOB, but demand level is China is still limited and also downward. The increase in USD rate to be equal to euro means an increase in our exchange rate, which will naturally affect prices at IME.

Two factors will affect the market in the coming weeks: power cuts, which will become serious from next week, and the change in USD rate, which will help increase prices in Iran market too. We should not forget that August is usually a month of stagnation in our steel market due to summer hot weather, which coincides with thr Month of Muharram this year.

 

CBI weekly average ex-rate for Steel Products (SANA): Rials 260,117/ 1USD

17 July 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Jul 17, 2022 12:12
Number of visit : 410

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