Billet: The ongoing truck driver strike in Iran has significantly impacted the steel market, leading to a standstill in billet prices.
Long Products
Rebar: The disruption in transportation also caused a downward trend in rebar prices over the weekend.
I-beam: Following a significant increase in I-beam prices last week, a downward correction was anticipated for this week.
Flat Products
HRC: The inability to transport goods led to a drop in demand and a decrease in hot-rolled coil prices.
HRP: Supply restrictions due to electricity issues and transport challenges caused an increase in Oxin sheet prices.
CRC: Cold-rolled coil prices saw a downward trend due to halted demand, stemming from both electricity and transportation problems.
HDG: HDG price followed a similar trend as CRC market, influenced by the decrease in hot-rolled coil prices.
Weekly Analysis:
In the world market: International markets are largely unchanged from last week. Iron ore is holding steady at around USD100/mt, and scrap metal is stable but stagnant at USD320 to USD 330. Consequently, billet prices remain un¬changed at a base of USD410 -USD430 /mt. Despite good transactions in the hot-rolled coil market, the overall outlook for the steel market appears calm.
The Chinese market is experiencing a recession, with signs of a slowdown in China's electric vehicle market. Generally, the Chinese approach is to saturate the commodity market. The trends in steel production, housing, and electric vehicles are consistent. The world is watching the Middle East and awaiting the outcome of negotiations between Iran and the United States.
In the domestic market: Power outages have impacted the construction sector, leading to a sharp rise in cement prices, while the limited supply of sections is slowly becoming apparent. Most billet producers are facing a shortage of DRI. While a disruption in this trend would typically lead to an increase in raw material prices and a decrease in product prices, the electricity issue prevents an increase in production, thus limiting significant price fluctuations. It's important to remember that transportation issue is temporary, but the electricity problem will persist until the end of summer.
Last week, the performance results of steelmakers were publicized, indicating losses for major producers. Usually, the release of such news tends to boost stock market prices. Dr. Nili's analysis on a potential agreement with the U.S. last week was also notable, speaking of an economic growth surge up to 8% and an injection of approximately USD 20 billion into the national economy. However, imbalances will likely maintain the 30% inflation rate. Therefore, even if an agreement is reached, a decrease in steel prices should not be expected.
CBI average ex-rate for Steel Products (SANA): Rials 686,352/ 1USD
02 June 2025
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM