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Iran Steel Market Trend in Week 19th , 2024

Iran Steel Market Trend in Week 19th  , 2024

Billet

Domestic billet market was downward due to weak demand, lower ex-rate and export prices. Its average price dropped by USD 3/mt to USD 541/mt ex-work including VAT.


Long Products

Weak demand, market negative sentiment and lack of liquidity caused price of rebar to decrease from USD 650/mt to USD 642/mt by end of the week.

Lack of demand made I-beam price also downward from USD 742/mt to USD 728/mt ex-work including VAT by end of the week.

 

Flat Products

Mobarakeh Steel co HRC 2 mm thickness average price changed from USD 946/mt to USD 915/mt ex-work including VAT. Weak demand and lack of liquidity caused prices to fall.

Oxin co HRP has almost reached its bottom, that's why it did not change seriously due to weak demand of the market. It was around USD 865 – 866/mt.

CRC demand was weak, while Chinese material was available in the market. Lower currency rate made import cargoes downward and pressured domestic products. CRC average price changed from USD 1200/mt to USD 1177/mt by end of the week.

With the downward trend of HRC, along with lower ex-rate, HDG price was also downward from USD 1235/mt to USD 1207/mt by end of the week.

 

Weekly Analysis:

In the world market:

Unfortunately, the war in Gaza continues, oil price has not changed seriously, billet and scrap price has also remained almost unchanged despite weak demand, stagnation in Chinese market continues, while inflation rate in the United States does not seem to decrease, thus its Interest rate won’t drop too. The mistrust of investors will continue due to the war in Gaza and Ukraine. Maybe we should wait for the election in USA that might change political condition globally.

 

In the domestic market:

Billet price was downward, while induction based billet is facing with limited supply, naturally, as billet price works as a base in the stock market, base price of pellet and DRI will also decrease.

Rebar supply was not welcomed by buyers because there is no consumption, while most of mills do not have availability of all sizes, tonnages of 500 tons or above is being offered in the market, which shows the problem of liquidity, not the real supply. Stabilization of export exchange rate and the restrictions on the return of foreign currency have created many problems for the mills.

China steel export from January to April this year exceeded 35 million tons, which has not been recorded since 2016. China is also taking control of markets in the Middle East, which is our export competitor. Continuation of this trend will cause heavy losses for Iran steel industry. Currently, domestic billet price is not attractively far from its cost price, that's why offers are mostly for show not real.

Maybe in June, we should expect a jump in prices, of course, if market policies change, otherwise we will witness closure of some production units.

 

CBI average ex-rate for Steel Products (SANA): Rials 415,271 / 1USD
13 May 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM

 

May 13, 2024 11:16
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