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Iran Steel Market Trend in Week 03rd , 2024

Iran Steel Market Trend in Week 03rd   , 2024

 

Billet

Lower supply and higher ex-rate made billet price up from USD 515/mt to USD 522/mt ex-work including VAT in Iran domestic market.


Long Products

Limited billet availability and higehr ex-rate made rebar average price rise from USD 589/mt to USD 594/mt by end of the week.

Higher ex-rate made I-beam demand rise and its price improved by USD15/mt to USD 692/mt ex-work including VAT.

 

Flat Products

Mobarakeh Steel co HRC 2mm thickness price increased by USD 5 /mt to USD 975/mt ex-work  Mobarakeh inclduing VAT during last week in Iran domestic market. The rise in currency price increased price of HRC. But the problems that occurred for some LCs and the need for liquidity made market returned.

HRC market situation affected Oxin co HRP price too and it changed from USD 863/mt to USD 866/mt by end of the week. By middle of the week it rose to USD 871/mt and then returned.

CRC market was messed up, the increase in exchange rate and supply limitations caused its price to rise from USD 1108/mt to USD 1120/mt by end of the week.

Despite the decrease in HRC price, higher ex-rate and upward zinc price made HDG improved froom USD 1059/mt to USD 1076/mt ex-work including VAT.

 

Weekly Analysis:

In the world market:

Oil price is still below USD 80/mt despite the continued tensions in Red Sea. Iron ore reached USD 128/mt CFR China with a slight decrease. Scrap price is USD 425/mt CFR Turkey but billet fob Black sea has remained almost the same. Global markets do not know about consumption growth and this year's demand will probably be less than the previous year or the same. It does not seem that global markets situation will change seriously until the end of the Gaza war. If the market returns to normal conditions, investors will be hopeful, especially in Arab countries that have a lot of money. For now, as the previous weeks have passed, we have to wait for the outcome of this war.

 

In the domestic market:

DRI supply level in the domestic market has reached the bottom. In the previous week, billet supply in spot market was very limited and its price improved due to the supply problem and higher exchange rate. This problem was well seen in the stock market transactions. This trend will be more or less followed in the coming weeks because billet export orders are currently keeping the mills busy.

Regarding flat products market, it shows a different perspective. The sharp increase in prices along with the weak demand caused orders to fall back. On the other hand, it has been heard that some traders have turned to the supply of goods due to the delay of LCs, this has caused the prices to fall. If this problem is not solved, it may spread to long products market too. Finally, the problem will manifest itself on a wider level in the banking network, where the government's intervention would be required. The market will probably experience different sentiments in the coming weeks.

 

CBI average ex-rate for Steel Products (SANA): Rials 391,679 / 1USD
22 Jan 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM

 

Jan 22, 2024 11:58
Number of visit : 209

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