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Iran Steel Market Trend in Week 32nd , 2023

Iran Steel Market Trend in Week 32nd  , 2023

Billet

Billet price was upward due to the limited supply and lower inventory at warehouses from USD 568/mt to USD 583/mt ex-work including VAT, but on Wednesday market was a little calm.

 

Long Products

Higher billet price made rebar market upward from USD 647/mt to USD 659/mt ex-work by end of the week. By managing the supply level and offering non-standard products, mills offered their allocations at IME, but as expected, rebar transactions were not pleasant.

Upward rebar market made I-beam also up from USD 702/mt to USD 747/mt ex-work including VAT.

 

Flat Products

HRC 2 mm thickness was  USD 841 /mt ex-work Mobarakeh on Saturday, which reached USD 846/mt by Wednesday. Average HRC price was decreasing due to weak demand. It seems that price of this product has reached its bottom.

Since HRP price has reached the bottom, sellers were resisting against any price reduction and Oxin co HRP average price remained at around USD 848/mt ex-work including VAT.

As CRC consumers’ holiday time is coming, its upward trend has started and average price rose from USD 1135/mt to USD 1145/mt.

HDG market had a limited fluctuation, but no serious change was seen in practice.

 

Weekly Analysis:

In the world market:

Steel scrap price has remained almost stable. Despite lower demand in Turkey, sellers do not want to reduce prices, as billet price has remained constant. Considering oil price of USD80/ barrel, billet price do not have much scope to decrease. Even stagnation of Chinese market did not have the power to change billet price last week. Flat products prices have remained almost unchanged in China domestic market as well as in other markets. In general, as it was said before, billet and flat products prices have reached the bottom. With the end of rainy season and imroving flood problems in China, a temporary demand will probably enter the market next month. Investment of Arabs in Turkey, which is expected in the last quarter of this year, will help to stimulate this market and will raise price of scrap, while the available factors show that there is no possibility of a drop in price.

 

In the domestic market:

Last week, Iran domestic market finally came to the conclusion that billet supply limit is real and that is why its price has reached the bottom, so customers started buying and improved prices at IME ( Iran Mercantile Exchange).  Credit supplies also contributed to this price increase. This affected the rebar market. Rebar producers did not have attractive supplies, that's why rebar offers were not welcomed, but the increase in the price of billet raised base price of DRI and rebar. Higher DRI price justifies the increase in billet price last week, especially since scrap price also increased.

When power cut issue improves, billet production will increase and this will rise DRI price because it will increase its demand. Another issue that has affected price of billet is the problem of scrap supply. Scrap supply depends on the recession or boom in construction market, in recession conditions, scrap supply decreases all over the world, and this matter has greatly affected the steel market in the last two months, so the possibility of price recovery is very weak.

 

CBI average ex-rate for Steel Products (SANA): Rials 372,311/ 1USD

14 Aug  2023

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

 

Aug 14, 2023 15:24
Number of visit : 333

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