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