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Iran Steel Market Trend in Week 20th , 2024

Iran Steel Market Trend in Week 20th  , 2024

Billet

Billet price did not change seriously during last week In Iran domestic market. It was between USD 538-539/mt ex-work including VAT.  Despite weak demand and downward ex-rate, supply management at IME ( Iran Mercantile Exchange) and finished prices reaching the bottom  were the reasons for this relative stability.


Long Products

Rebar price was in a downward trend due to weak demand, lower exchange rate and the negative sentiment of the market. It was down from USD 641/mt to USD 631/mt by end of the week.

Lack of demand and market waiting for further price reduction caused I-beam price to fall from USD 727/mt to USD 698/mt.

 

Flat Products

Mobarakeh Steel co HRC 2 mm thickness average price changed from USD 907/mt to USD 892/mt ex-work including VAT. HRC price has reached its bottom, Mobarakeh Steel co offers were at a higher price than expected, we have to wait to see market trend.

HRP price has reached the bottom level, but weak demand does not let prices change. Its average price changed from USD 869/mt to USD 862/mt.

Lower ex-rate and supply of imported goods caused CRC price to drop from USD 1171/mt to USD 1117/mt, this trend cannot continue for long.

Lower HRC price and the downward trend of the currency were the two reasons for downward trend of HDG from USD 1211/mt to USD 1174/mt ex-work including VAT.

 

Weekly Analysis:

In the world market:

Global markets have not changed significantly compared to the previous week, oil, scrap and billet has remained almost constant. Regarding Gaza, the world has come to the conclusion that there should be no hope for the end of the war, but there are hopes from Chinese market. It was announced that Chinese government will lend up to USD 38  billion to buy in real estate market, besides that, the government's plan to issue ultra- long bonds was announced on Wednesday. Indeed, these policies will have a positive impact on the Chinese and world economies, especially since 17-year bonds will be invested in long-term plans. These are positive signs that give hope for the coming months. Currently, prices have reached their bottom and their serious reduction does not seem possible.

 

In the domestic market:

Prices in the domestic market are not far from their floor. Billet and rebar are close to the prices seen two years ago, during the last two years, all factors affecting production costs including rent, wages, electricity, gas price, etc have increased. How is it possible to maintain the prices at the level of two years ago? If this trend continues, it will have many consequences for the steel industry and then the government.

 

CBI average ex-rate for Steel Products (SANA): Rials 414,638 / 1USD
20 May 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM

 

May 20, 2024 12:47
Number of visit : 57

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