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
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.
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.
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.
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
Iran Steel News Bulletin