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Iran Steel Market Trend in Week 33rd , 2023

Iran Steel Market Trend in Week 33rd  , 2023

Billet

Lower supply level and the empty warehouses of re-rollers increased billet price. Its price changed from USD 538/mt to USD 588/mt ex-work including VAT.

 

Long Products

Higher billet price made rebar price upward, but high market inventory level along with weak demand made price fluctuations limited. Its average price was changed from USD 654/mt to USD 662/mt ex-work including VAT.

Higher billet price and limited supply of steel beams raised its average price from USD 708/mt to USD 727/mt by end of the week.

 

Flat Products

In HRC market, participants were expecting upward trend but price management by Mobarakeh Steel co didn’t let prices change significantly. HRC 2 mm thickness was USD 841 /mt ex-work Mobarakeh on Saturday, which reached USD 844/mt by Wednesday.

Weak demand did not allow HRP price to fluctuate much. It was up from USD 843/mt to USD 845/mt and returned to USD 836/mt by end of the week.

As always, HDG price followed HRC market fluctuations and changed from USD 1116/mt to USD 1083/mt ex-work including VAT.

 

Weekly Analysis:

In the world market:

Global market has remained almost constant. Scrap and billet price improved a little, but demand did not change much. Oil price remained stable above USD 80 / barrel and the possibility of its fall is limited. With the current conditions, there is no possibility of any price reduction.

What will affect the market in near future include export market issues and exchange rate.

In export market, after the agreement between Iran and Saudi Arabia, China have turned to Iran market, and its desire to buy iron ore concentrates, billet and slab is significant. From now on, market participants should follow the export ring more closely.

 

In the domestic market:

Domestic market demand has remained confused and weak. Power cuts has practically minimized production of billet and limited its supply level, but this problem will be resolved within next two weeks. After that, we will have an increase in the price of DRI due to higher demand from billet producers.

The government is sensitive to the exchange rate issue. Export of oil and natural gas condensates has reached its highest level, this process has started from three months ago. Naturally, it will improve government economic activities. Freeing currency resources of Iraq, Korea and Japan will also reduce government's foreign currency expenditures for food and medicine, therefore, higher exchange rate will not be seen easily. But the problem is that the increase in foreign currency income may raise the monetary base and cause more inflation.

 

CBI average ex-rate for Steel Products (SANA): Rials 372,102 / 1USD

21 Aug  2023

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

 

Aug 21, 2023 12:11
Number of visit : 376

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