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Iran Steel Market Trend in Week 36th , 2023

Iran Steel Market Trend in Week 36th  , 2023

Billet

Billet market was upward during last week in Iran domestic market due to empty warehouse of re-rollers, which increased demand level. Credit offers at IME helped to raise its price from USD 582/mt to around USD 586/mt ex-work including VAT.

 

Long Products

The increase in billet price made rebar price upward, while demand was very limited. Its average price rose from USD 661/mt to USD 665/mt ex-work including VAT.

Higher long products prices and positive market sentiment made I-beam upward from USD 691/mt to USD 713/mt by end of the week.

 

Flat Products

HRC 2 mm thickness was USD 898 /mt ex-work Mobarakeh on Saturday, which reached USD 909/mt by Wednesday. Limited increase in ex-rate improved HRC market sentiment, but became quiet soon.

Oxin co HRP market remained calm and almost unchanged, but its price has no room to decrease more. Its average price changed from USD 849/mt to USD 852/mt ex-work including VAT.

CRC price remained stable at USD 1138/mt ex-work, as holiday sentiment kept the market quiet.

HDG average price stayed at around USD 1115/mt ex-work including VAT.

 

Weekly Analysis:

In the world market:

Golobal market is still sluggish, but prices are not willing to decrease and are slowly increasing. Oil price is rising, which is caused by restockings of Americans. Scrap price has an upward trend, which drives billet price up. Concerns about China market is more serious in the financial market of this country than in the commodity market, although demand is weak, financial abilities of this country has not allowed a serious economic crisis to occur.

 

In the domestic market:

In the domestic market, from raw materials to semi finished products, market is booming. Despite closure of billet producers, DRI export has greatly increased and multiplied. The same model is seen in iron ore concentrate, pellet and billet market as despite higher production, export level has filled the gap of limited domestic consumption. This is completely logical and profitable, and the difference in export prices with sales at IME justifies this. Finished products mills also welcome not selling their products at IME because it gives them the opportunity to sell in the spot market or export. In any case, the increase in the export of mineral products will increase billet and steel products prices, although there is no demand in the market, but the price increase is inevitable due to the increase in the price of raw materials. The gap of about ten percent between the stock market prices and the free market for rebar is affected by this. Stock market will not have the strength to deal with this trend until export market is active.

Volatile weeks are coming as billet  producers’ power shortage is easing, which will increase DRI demand on the one hand and increase billet supply level on the other hand.

 

CBI average ex-rate for Steel Products (SANA): Rials 371,930 / 1USD

11 Sep  2023

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

 

Sep 11, 2023 13:13
Number of visit : 327

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