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Iran Steel Market Trend in Week 23rd , 2024

Iran Steel Market Trend in Week 23rd   , 2024

Billet: Last week billet price remained almost unchanged in Iran domestic market. In fact, power shortage due to the hot weather and its possible influence on mills’ production rate was an excuse for the price stability. Mid-week holiday and market closure also made market sentiment quiet.

بیلت

Rebar: The market has come to the conclusion that rebar price has reached the bottom, that's why its price did not change seriously.

میلگرد

I-beam: I-beam market remained almost unchanged because there is no more room for price reduction.

 

تیر

Flat Products

HRC: The mid-week holiday kept HRC market quiet.

ورق سیاه

HRP: HRP market was stable and unchanged.

اکسین

CRC: Weak demand kept CRC market steady.

ورق روغنی

 

HDG: Due to the stability of HRC market, HDG price did not change.

گالوانیزه

 

Weekly Analysis:

In the world market:

 June has started, followed by holidays and reduced consumption. In Europe, more than one million consumers do not pay for electricity using renewable energy, and this issue has questioned the value of shares of companies active in this type of energy. On the other hand, the level of copper inventory in China's warehouses has reached a historical record, which indicates the drop in demand for electric vehicles. Due to the above factors, oil price has reached below USD 80 and efforts of oil producers to maintain its price in the summer is quite evident.

The war in Gaza is not over and there is concern that it will spread to Lebanon, which threatens the region. In this situation, investors are worried and capital will flee. Apparently, the Chinese have stopped buying gold, which means something for the markets, but not in the short term. World market is still calm and this will continue until end of July unless political conditions in the region change.

In the domestic market:

The society is busy with upcoming election and the government will not spend until the appointment of the next president, so the recession will continue. The problem of power cuts along with the recession has increased DRI supply as its cash market price is close to IME (Iran Mercantile Exahnge) prices.

Despite the decrease in billet production, market price of this commodity is still lagging behind IME prices, which is due to the liquidity problem. Most rebar producers do not have enough inventory, which is due to lack of liquidity and power shortage.

The issue that is less paid attention to, is that power cuts lowers steel consumption, especially in the industrial sector. All these factors indicate stagnation and the problem of liquidity shortage.

Indeed, after the presidential election, the situation will change because the suppressed demand will return to the market, of course, if the political situation in the region remains the same.

CBI average ex-rate for Steel Products (SANA): Rials 421,093 / 1USD
10 June 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM

 

 

 

Jun 10, 2024 12:30
Number of visit : 40

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