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Iran Steel Market Trend in Week 47th, 2022

Iran Steel Market Trend in Week 47th, 2022


With the stagnation of long products market, billet price was also down from USD 491/mt to USD 485/mt ex-work including VAT during last week in Iran domestic market. Even delayed payment offers did not have customers. As DRI price is downward, it will affect billet market in near future too.


Long Products

Rebar price has reached the bottom, but its transactions level has practically reached the minimum too. Its average price dropped by USD 2 /mt to USD 564/mt by end of the week. The current trend will cause closure of many mills, which would be a result of wrong policies at the commodity exchange market.

I-beam price was also downward from USD 645/mt to USD 631/mt due to lack of demand. Esfahan Steel co market management didn’t help the situation to become better.


Flat Products

Mobarakeh steel co HRC 2 mm thickness was USD 715/mt on Saturday, which reached USD 722 /mt ex-work by Wednesday. Lack of demand and the release of cheap inventories sold three months ago reduced average HRC price of the mill from USD 746/mt to USD 737/mt.

Oxin co HRP prices stayed almost unchanged at around USD 859/mt as the mill stopped delivering cargo. Besides demand is also scarce.

CRC price changed from USD 1024/mt on Saturday to USD 1017/mt by end of the week. Some thicknesses supply level is limited and has made its market calm.

HDG price remained almost stable, but its stability is under question.


Weekly Analysis:

In the world market:

1- Last week, due to stagnation of demand, India removed export taxes on steel raw materials, which may reduce price of iron ore concentrate and DRI.

 2- Due to renewed outbreak of Covid-19 in China, steel demand outlook is still weak and unclear.

3- Determining the price ceiling for Russian oil will put pressure on the price of oil and this will reduce billet price too.

 4- Upcoming New Year Holiday sentiment in global markets has affected demand outlook in the northern hemisphere and USA.

Therefore, steel price and demand will both have a downward trend in near future.


In the domestic market:

1- Average base price of DRI at IME decreased by more than USD 31/mt.

2- For the first time, billet had no buyer at IME, even delayed payment offers were not welcomed.

3- Rebar offers at IME were not sold. The reason was the gap of more than USD 35/mt with the spot market.

 4- The restrictions that IME has created for the mills, so that those who purchase their billet from IME must also offer thier finished products there too, has caused the IME prices to be far away from the real market.

Today's market is under pressure from two sides: The first one comes from speculators who have bought raw materials or finished products at delayed payments and are offering them in cash in the spot market. If mills want to have cash sales, must lower their prices very much which will affect the whole steel production chain negatively.  

The second problem is lack of confidence in buyers and their cautious attitude, which is caused by the declining trend in domestic and global market, with the addition of social issues. The only way to be out of this problems might be encouraging export by the government.


CBI weekly average ex-rate for Steel Products (SANA): Rials 287,981/ 1USD

28 Nov 2022


Iran Steel News Bulletin




Nov 28, 2022 12:05
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