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Iran Steel Market Trend in Week 42nd , 2022

Iran Steel Market Trend in Week 42nd  , 2022

 

Billet

Higher DRI price and upward ex-rate made billet price up in Iran domestic market by USD 2 /mt to USD 508/mt ex-work including VAT by end of the week. While export market is strong and would remain so in near future.

 

Long Products

End of the month market sentiment and lower demand reduced price of rebar from USD 584/mt to USD 580/mt ex-work including VAT, but market has reached its bottom and due to the increase in raw materials prices, there is no room for more reduction. Any price drop will lead to cuts in production level.

 I-beam market was also quiet and average price dropped by USD 7/mt to USD 678/mt by end of the week.

 

Flat Products

Mobarakeh steel co HRC 2 mm thickness was USD 758 /mt on Saturday, which reached USD 728 /mt ex-work by Wednesday. Wide and cheap supply of Mobarakeh Steel co lowered market price. It is not known whether the mill can achieve his obligations or not.

A nearly halted supply of Oxin co HRP held the market. Demand is weak, but the supply is almost zero. Market average price was around USD 896-897/mt ex-work including VAT.

Higher supply by Mobarakeh Steel co made CRC price down from USD 1064/mt to USD 1059/mt by end of the week.

Despite lower HRC price, HDG market improved a little as prices have reached the bottom from USD 993/mt to USD 995/mt.

 

Weekly Analysis:

Efforts to reduce oil price continue, but it does not seem that oil will go below USD 80/barrel according to the floor price set by the United States. Concerns about gas supply problem in Europe is not the same as in previous months, so we can hope for the activation of the European market. In China, new economic policies have been announced, based on which, according to the calculations of economists, despite the decrease in economic growth, government spending, especially in the military sector, will increase. This means replacing the construction steel with the steel used in the military sector, which usually governments do not announce its data. Global steel prices have reached the bottom and there is no room for significant reductions. Fluctuations are limited but due to weak demand, any price increase cannot be serious too.

 In Iran, prices have reached the bottom. Weak demand and speculation of some market players have brought the prices to their bottom. On Thursday, it was announced that the export of minerals has been freed for the commercial sector. This policy was the right thing to do due to the heavy inventories of pellets, this will make market move. Indeed, due to the low inventory of long products, the increase in the export of minerals will lead to an increase in the price of billet and movements in long products market. In flat products market, export of slab and Oxin co HRP has improved, which will show its effects on domestic market in the coming months. The fact is that prices no longer have room to decrease and lack of demand will lead to production cuts.

 

CBI weekly average ex-rate for Steel Products (SANA): Rials 270,436/ 1USD

24 Oct 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

 

Oct 24, 2022 11:52
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