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.
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.
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.
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
Iran Steel News Bulletin