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Iran Steel Market Trend in Week 34th , 2023

Iran Steel Market Trend in Week 34th  , 2023

Billet

Limited supply level made billet price in Iran domestic market upward from USD 577/mt to USD 589/mt ex-work including VAT.

 

Long Products

Rebar price remained stable, and only on Wednesday had some improvement due to sales with LC payment and higher billet price. It was around USD 661-662/mt ex-work including VAT.

I-beam price was almost unchanged and only a limited change was seen in the middle of the week, which was affected by ex- rate fluctuation. Its price changed from USD 710.5/mt to USD 709.6/mt.

 

Flat Products

HRC 2 mm thickness was USD 873 /mt ex-work Mobarakeh on Saturday, which reached USD 911/mt by Wednesday. HRC price had reached bottom level in the previous week, and the price increase this week was just a correction.

HRP price remained almost unchanged due to weak demand at around USD 835/mt ex-work including VAT.

With better activity in consumer markets, CRC demand has increased and its price went up from USD 1119/mt to USD 1139/mt by end of the week.

HDG market followed HRC upward trend and its price improved from USD 1083/mt to USD 1100/mt ex-work including VAT.

 

Weekly Analysis:

In the world market:

Oil price is still standing at the border of USD 80/barrel. Global scrap and billet price trend is still slow but upward. A billet cargo was sold last week at a price higher than USD470/mt fob Iranian ports. This shows that market is not expecting downward trend in prices, but demand is not strong. In Far East import billet is offered at USD 500-520/mt CFR from Indonesia or China. It is expected that this process will continue slowly. Concerns about China's economic conditions and its government's slow response to the recession still remain, which has directly affected steel market trend.

 

In the domestic market:

In the next few weeks, several religious holidays will cause markets to be inactive in Iran domestic market, so the economy will be practically in recession. Power cuts at mills has reduced DRI demand so much that part of offers at IME was not sold. But this problem will be solved gradually in September.

Flat products market is facing with a serious lack of demand, to the extent that, except for Mobarakeh Steel co, other producers got permission to sell their product to traders, but still there was no buying interest.

The main issue that has occupied minds of economic activists these days is the export of oil and gas condensate, which has exceeded the limit of three million barrels. The first question is how much of the foreign exchange from export of these goods has returned or will be? The second question is the effect of entry of these moneys and the freed money from Korea and other countries on our economy and whether this money will be spent in production and construction sections or not. In this case, assuming the stability of  exchange rate, will inflation occur as a result of demand or not?

 

CBI average ex-rate for Steel Products (SANA): Rials 371,989 / 1USD

28 Aug  2023

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

 

Aug 28, 2023 12:30
Number of visit : 344

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