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Iran Steel Market Trend in Week 16th , 2024

Iran Steel Market Trend in Week 16th    , 2024

 

Billet

Billet price was on a downward trend during last week in Iran domestic market from USD 586/mt to USD 573/mt ex-work including VAT. High supply level along with weak rebar demand was the reason behind this downward trend.


Long Products

Rebar market was faced with some fluctuations and went up, but by end of the week it was down. Limited demand along with the flow of goods purchased last year to the market was the cause of this trend. It’s average price dropped from USD 697/mt to USD 691/mt ex-work.

I-beam market resisted against upward trend and higher supply from Esfahan Steel co helped its price decrease from USD 849/mt to USD 804/mt ex-work including VAT by end of the week.

 

Flat Products

Mobarakeh Steel co HRC 2 mm thickness average price changed from USD 1083/mt to USD 1071/mt ex-work including VAT. HRC market was upward by first half of the week but bigher supply by Mobarakeh Steel co and the increase in slab price kept its average price down.

Oxin co HRP pricee was almost stable by help of the mill’s management and the orders received from oil sector last year.

Higher ex-rate made CRC price improved from USD 1308/mt to USD 1313/mt while its demand was not strong.

HDG market followed HRC market fluctuations and changed from USD 1287/mt to USD 1336/mt ex-work by end of the week.

 

Weekly Analysis:

In the world market:

Iran's export billet price has remained stable at around USD470/mt fob, oil price is in the range of USD80/barrel, besides, shadow of Gaza war has made markets cautious and this has greatly affected steel demand, in this situation it is pointless to expect any price increase. On the other hand, USA has sanctioned Khuzestan Steel co, while this sanction was previously imposed on the transfer of money from the company's exports. Naturally, there is no serious change in the export conditions of Khuzestan steel co. It is expected that global flat products decrease slowly. The steel market should also wait for the era after the war in Gaza and Ukraine.

 

In the domestic market:

Flat products demand is not serious, while it is heard that significant tonnages are waiting for import order registration to flow to the market. Apparently, the scenario of the previous year is repeating itself, especially that the price gap between flat products and rebar has increased a lot.

In long products market, currently, all mills, from billet to rebar producers, are engaged in just market managing. Rebar price cannot decrease seriously for two reasons:

First is the issue of prices in the steel chain. Pellet availability is reduced and its price does not seem to decrease, DRI supply will increase, but its producers will not allow the price to decrease by selling on credit.

The second reason is the increase in production costs, especially gas, wages, and freight, which does not allow DRI, billet, and rebar price to decrease significantly.

In coming weeks due to the supply of rebars sold last year and lack of demand, market will be downward, but this trend cannot be sustained due to higher production costs.

 

CBI average ex-rate for Steel Products (SANA): Rials 404,384 / 1USD
22 Apr 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM

 

 

Apr 22, 2024 13:46
Number of visit : 179

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