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Iran Steel Market Trend in Week 09th , 2024

Iran Steel Market Trend in Week 09th   , 2024

 

Billet

Billet price increased during last week in Iran domestic market from USD 565/mt to USD 588/mt ex-work including VAT due to higher ex-rate and improvement in demand.


Long Products

The rise in currency price and supply restrictions both made rebar price increase from USD 632/mt to USD 653/mt ex-work including VAT.

I-beam market also had an upward trend like rebar and increased from USD 753/mt to USD 793/mt by end of the week.

 

Flat Products

HRC price increased due to higher ex-rate and year end improvement in demand. Mobarakeh Steel co HRC 2 mm thickness average price changed from USD 982/mt to USD 1020/mt ex-work including VAT.

Higher ex-rate also affected Oxin co HRP price and its average price rose from USD 900/mt to 921/mt ex-work including VAT.

CRC market faced turbulence due to the confusion of currency market and changed from USD 1153/mt to USD 1192/mt by end of the week.

Higher ex-rate along with the increase in HRC price caused HDG price rising from USD 1108 /mt to USD 1131/mt .

 

Weekly Analysis:

In the world market:

Price of scrap, iron ore and billet has been downward, oil is hovering around USD 80/ barrel and funds have gone to cryptocurrencies. The rise of Bitcoin means concern about the economic stability in the world and it shows that the US sanctions have found an escape route, as long as the sanctions against Iran and Russia continue, demand for exchange with cryptocurrencies will increase.  Greedy investors also intensify this trend, so the rise in the price of digital currencies has helped the countries under sanctions. The outlook of the world steel market is facing weak demand, so we should wait for the prices to reach their bottom soon.

 

In the domestic market:

Currency rate was the main driver of Iran domestic market in the previous week, in the situation where most of mills were facing with billet shrtage, while many of them are facing gas and production problems too. But there are practically ten days left until end of the year in Iran and the delivery of delayed orders is still not finished.

Apparently, the government doesn't want steel price to rise, but it doesn't know how to do it.  News indicates construction plans improvement in the coming year. It has to be seen what solutions about the energy market the government  have in mind with the increase in its demand and power outages and rising wages in the next year. In any case, there is no room for trading in the next two weeks to see further price increases.

 

CBI average ex-rate for Steel Products (SANA): Rials 395,055 / 1USD
04 March 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM

 

Mar 4, 2024 15:01
Number of visit : 239

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