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Iran Steel Market Trend in Week 29th, 2022

Iran Steel Market Trend in Week 29th, 2022

Billet

Billet price went down from USD 573/mt to USD 559/mt ex-work including VAT. Despite the fact that foreign currency rate was increasing and supply level at IME was limited, but stagnation of market made billet price downward.

Long Products

In Rebar market, demand, afraid of further reduction, retreated completely, despite the fact that the inventories are not high, but buying interest is scarce too, as a result, prices started a downward trend from USD 662/mt to USD 652/mt by end of the week.

Despite weak demand, limited supply of beams made its market stable at around USD 718/mt ex-work including VAT.

Flat Products

Downward trend of Mubarakeh Steel co HRC was due to the rumors circulating in the market along with the weak demand, and this trend is likely to continue. 2 mm thickness HRC ex-work Mobarakeh was USD 778/mt on last Saturday, which reached USD 728 /mt by Wednesday.

Oxin co HRP had a downward trend due to weak demand, but the mill’s market control made downward trend limited from USD 989/mt to USD 984/mt.

CRC market was quiet with lack of demand expected to be continued in coming weeks. It was changed from USD 1107/mt to USD 1104/mt by end of the week.

HDG had a downward trend due to lower HRC price and limited demand from USD 1098/mt to USD 1079/mt.

 

Weekly Analysis:

In the global market, China property sector problem is spreading to its banking system. The latest news shows that Chinese government is considering an emergency loan due to the dangerous situation of Chinese banks that are involved in the property sector. While Coronavirus spread in China has not decreased, it seems that higher infections in other countries such as India and Iran has resumed. If Chinese market reacts quickly to the government's policies, the fall in steel prices will stop. On the other hand, Russian dumping in the steel market has reached its bottom and in the past weeks we have seen an increase in prices or their stability.

But in Iran, due to stagnation of export market as well as limited domestic demand, prices have been falling. Power cuts has not only affected supply side but also the demand level too, and as a result, most of economic players who see prices falling back on a daily basis have stopped trading. Last week, it became clear that while mills like Khuzestan Steel were seeking to export billet at a price above USD520/mt, a large shipment was sold at a price of about USD460/mt fob, this news created tension in the steel market.

The outlook for the coming weeks is not clear as market participants are holding a waiting policy. The current recession situation along with the recession in the global market will reduce production and will reduce export and foreign exchange, which will increase currency pressures.

In the month of August, production and supply will reach its minimum due to power cuts and mills holidays. On the other hand, the demand will also decrease because Mourning Holidays of Month of Moharram is also coming. Overall, this will cause the steel market to shrink more.

CBI weekly average ex-rate for Steel Products (SANA): Rials 260,993/ 1USD

25 July 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Jul 25, 2022 15:13
Number of visit : 293

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