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Iran Steel Market Trend in Week 02nd , 2023

Iran Steel Market Trend in Week 02nd , 2023

Billet

Billet price had an almost stable trend during last week in Iran domestic market, the reason being liquidity problem of re-rollers and uncertainty about near future, which affected demand. Billet average price changed from USD 587/mt to USD 605/mt ex-work including VAT.

 

Long Products

Rebar remained stable, but market participants were expectating an upward trend due to lack of production. Average price changed from USD 664/mt to USD 678/mt ex-work including VAT.

I-beam saw a relative price improvement from USD 772/mt to USD 787/mt by end of the week, supply management by Esfahan Steel co played a role in this process.

 

Flat Products

Mobarakeh steel co HRC 2 mm thickness was USD 916/mt on Saturday, which reached USD 1017 /mt ex-work by Wednesday. Due to supply level fluctuations, the market had an upward trend. Higher global and domestic slab price was effective in this upward expectations.

Higher slab price, more slab exports and supply management caused Oxin co HRP price increase from USD 934/mt to USD 985/mt. Kavian co HRP was also up by USD 28/mt to USD 909/mt, gas supply shortage and lower production also afected HRP market.

Higher prices in world market and lower supply level made CRC  rise from USD 1217/mt to USD 1317/mt.

HDG market followed HRC upward trend from USD 1254/mt to USD 1305/mt ex-work including VAT by end of the week.

 

Weekly Analysis:

In world market, China seasonal increase in demand ahead of Lunar New Year holidays made Iron ore up and other steel products also experienced improvements. China market opening together with the government's new policy about property market, which was silent until last month, promises that China's demand trend will be followed by ups and downs, but the global recession following it can slow down demand.

In Iran domestic market, following power cuts and gas shortage, reduction in production was quite noticeable. DRI supply shortage has reduced billet supply level, rebar production has also decreased. Cold weather has disrupted transportation too. In the meantime, we have seen a decrease in the export supply of billet due to gas shortage, which actually would affect domestic billet price and exchange rate due to the decrease in export. In a situation where demand is not so serious, lack of liquidity is getting worse every day.

Coming weeks are weeks of price stabilization policy by the government and realities of the market.

 

 

CBI weekly average ex-rate for Steel Products (SANA): Rials 285,000/ 1USD

16 Jan 2023

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

Jan 16, 2023 14:19
Number of visit : 253

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