Billet price was on a downward trend from USD 633/mt
to USD 597/mt ex-work including VAT, the main reason for which was lower
currency rate and higher supply level at IME. Market expectations for lower
prices made billet down suddenly and reached bottom level during the week.
Lower ex- rate and stagnation of billet
market, made rebar market also downward from USD 707/mt to USD 680/mt ex-work
including VAT by end of the week.
I-beam was also downward due to market
depression despite Esfahan Steel co market control policy from USD 838/mt to
USD 784/mt by end of the week.
Lower ex-rate and market expectations made HRC downward but as
Mobarakeh Steel co stopped offering which helped prices from declining more. Mobarakeh steel co HRC 2 mm thickness was USD 981/mt on Saturday, which reached USD 931 /mt ex-work by Wednesday.
Oxin Co HRP was dwon from USD 969/mt to USD 950/mt
due to market stagnation despite higher slab price at IME.
Lower demand and ex-rate decline caused CRC to
drop from USD 1246/mt to USD 1214/mt.
HDG was also down as followed HRC market and lower
ex-rate from USD 1262/mt to USD 1235/mt by end of the week.
In global markets, China demand is helping prices,
while oil has a stable trend. Concerns about a global
recession have made everyone cautious. It seems that everything depends on China
market, which is uncertain due to the threat of covid-19 surging cases.
Domestic market is facing with raw material supply
issues, on the one hand, DRI supply suspension and reduction of billet
production, on the other hand, authorities price control policies. Experience has shown
that confrontation between these two will show its effects on the exchange
rate. Regardless of whether DRI is supplied or not, Iran steel market will look
more carefully at curency market.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 282,435/ 1USD
09 Jan 2023
Iran Steel News Bulletin