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Iran Steel Market Trend in Week 01st , 2024

Iran Steel Market Trend in Week 01st  , 2024

 

Billet

Billet market remained calm due to the stagnation of rebar market and closure of global markets due to New Year Holidays. Its average price in Iran domestic market changed from USD 518/mt to USD 513/mt ex-work including VAT by end of the week.


Long Products

Rebar price was down due to lack of demand from USD 589/mt to USD 586/mt ex-work including VAT.

I-beam market also continued declining from USD 708/mt to USD 692/mt ex-work including VAT.

 

Flat Products

HRC 2 mm thickness decreased from USD 1008/mt to USD 960/mt during last week. Lower demand and the market's fear of price increase made prices downward.

Oxin co HRP price also started dropping due to limited demand from USD 868/mt to USD 865/mt by end of the week.

Due to the silence of the demand, CRC market remained stable at around USD 1098/mt during last weel, the decrease in the purchase price at IME caused prices to decrease by end of the week.

With the calmness of HRC market, HDG remained quiet at around USD 1051/mt ex-work including VAT.

 

 

Weekly Analysis:

In the world market:

Oil price is still around USD 70/barrel. Last year at this time, its price was the same, while billet is offered at a price of about USD 480 /mt fob. It is expected that seasonal demand will enter the market before Chinese holiday in february to improve price of billet and iron ore. But this is before China's holiday, and after that, oil price and China's economic growth should be monitored. Of course, if the war in Gaza is over by then. Anyway end of the war in Gaza does not mean the end of the conflict and is the beginning of political tension. The world cannot Ignore millions of displaced people, in any case, politics has the upper hand for now, in this case, capital will wait and move only in safe places like India or USA.

 

In the domestic market:

Shortage of banking facilities and preference of politics over the economy, especially the election issue has overshadowed everything, these two phenomena of lack of money and decision making have stopped the domestic market.

The gas problem is much weaker than previous forecasts, in this situation everyone is trying to stay afloat.

The main problem is the stock market interference. Traders cannot buy any other goods in the stock market except rebar, as a result, the space for competition is limited, and this makes price discovery difficult.

The longer this process of duality of the market continues, the stability of the market will be delayed, this confusion has caused capital to flee from the steel sector.

The government's policy is to look at the public sector,  elections are coming up and the need for financial resources can be better met in this way. Last week the disaster in Kerman killed many innocent people, this tension raised currency rate. We should wait for the market after the elections in March.

 

CBI average ex-rate for Steel Products (SANA): Rials 391,774 / 1USD
08 Jan 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM

 

 

Jan 8, 2024 14:28
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