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Iran Steel Market Trend in Week 49th, 2022

Iran Steel Market Trend in Week 49th, 2022

Billet

Billet price had an upward trend during last week in Iran domestic market by USD 10/mt to USD 503/mt ex-work including VAT, which was caused by lower supply level which market insiders think that would continue.

 

Long Products

Rebar price improved a little from USD 566/mt to USD 573/mt. Transportation problem reduced rebar transactions volume.

I-beam average price increased by Esfahan Steel co market management from USD 645/mt to USD 678/mt.

 

Flat Products

Mobarakeh steel co HRC 2 mm thickness was USD 752/mt on Saturday, which reached USD 756 /mt ex-work by Wednesday.

Oxin co HRP dropped from USD 853/mt to USD 844/mt by end of the week. Limited demand and higher supply made the market downward.

CRC market was up by USD 12/mt to USD 1041/mt. White good producers’ CRC demand increased and made prices upward by end of the week.

HDG price increased due to higher cost price from USD 1040/mt to USD 1050/mt.

 

Weekly Analysis:

Chinese market has become active with the reduction of the Covid restrictions, besides, as January and Chinese New Year approach, the Chinese have started buying, but oil price is on a downward trend and it is likely to continue. Scrap price has increased in recent weeks, and China's demand improved which helped billet price stabilize. As long as the Chinese continue to buy, the market will remain stable, but after that, you should expect a drop in the price of billet because oil is falling. With the opening of the Chinese market, demand would be upward. Even some economists expect that the inflationary problem in USA in recent years will also be seen in China, but this will be clear after the China New Year holidays.

In Domestic market, gas supply problem has severely affected DRI supply and has reached its lowest level at IME (Iran Mercantile Exchange). Despite efforts to increase the supply, production problem continues, this has made market sure that billet price and therefore long products prices will be upward. Besides, DRI limited supply has affected domestic scrap price too. Considering the above, there will naturally be competition for purchasing DRI and its price will rise. This will directly affect billet supply level and its price while it is facing delivery problems too. Many experts expect that price of long products will increase as well.

In flat products market, custom duty has declined for HRC and CRC which means higher export level but its effect will be seen in the market from February onward.

 

CBI weekly average ex-rate for Steel Products (SANA): Rials 285,743/ 1USD

12 Dec 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

Dec 12, 2022 14:38
Number of visit : 389

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