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Iran Steel Market Trend in Week 18th , 2024

Iran Steel Market Trend in Week 18th    , 2024

Iran Steel Market Trend in Week 18th    , 2024
Billet
Domestic billet market remained almost stable during last week despite lower currency rate and limited demand, mainly due to lack of supply. Its average price was changed from USD 547/mt to USD 558/mt ex-work including VAT.

Long Products
Due to limited supply of billet and maintaining the gap between IME price and spot market, rebar market remained almost constant. Its average price changed from 663/mt to 660/mt ex-work.
Esfahan Steel co market management made I-beam price up from USD 743/mt to USD 756/mt, while its demand was limited.

Flat Products
Mobarakeh Steel co HRC 2 mm thickness average price changed from USD 989/mt to USD 960/mt ex-work including VAT. Higher supply of Mobarakeh Steel co, lower exchange rate and negative expectations of the market made HRC price downward.
Supply control by the mill and prices being at the bottom level made Oxin co HRP price stable. It was around USD 872/mt by end of the week.
Lower exchange rate and availability of imported goods made CRC market falling from USD 1249/mt to USD 1218/mt, but the market was up with improvement of ex-rate.
With the fluctuation of HRC market, HDG price also changed from USD 1251/mt to USD 1243/mt by end of the week.

Weekly Analysis:
In the world market:
Global prices have remained almost constant because they have reached the bottom level, all eyes are on the Gaza negotiations, which, despite hopes, do not have a clear perspective. Billet, scrap, and oil prices have not changed seriously, and it doesn't seem like there will be a significant change even with any possible peace at Gaza. Usually in May, markets are active in stocking for June and July holidays, maybe this method will bring a slight improvement in the markets.

In the domestic market:
The inconsistency in policies has caused domestic market to be confused, pellet is in short supply, DRI offers have increased and its base price has been heard up to USD 317/mt ex-work excluding VAT but cheap DRI price does not turn into billet. DRI price at IME this week is lower than the previous week, but billet production is profitable for the mills that have the whole chain. For this reason, billet supply level at IME is far from reality, despite the large numbers. As a result, rebar supply is delayed, the problem of liquidity and the confusion of ex- rate are also other reasons. In flat products market, prices have reached the bottom and it should be expected to improve, but competition of imported materials and fluctuation of ex- rate will limit fluctuations. In the short term, there are talks of lowering billet price too, but it does not seem to be sustainable.

CBI average ex-rate for Steel Products (SANA): Rials 412,581 / 1USD
06 May 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM


May 6, 2024 11:13
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