Billet: Holidays ahead, increased cash supply on Iran Mercantile Exchange, and a stagnant rebar market were the reasons behind the decline in billet price.
Long Products
Rebar: Start of loading cargoes after current disruption in transportation led to an increase in supply and anticipation of lower rebar price.
I-beam: Supply management caused an increase in beam price.
Flat Products
HRC: Calm supply resulted in a decrease in HRC price.
HRP: Loading and supply of goods led to increased supply and decreased prices for Oxin co HRP.
CRC: CRC price has hit bottom and have no room for further reduction.
HDG: The downward trend in HRC price led to a decrease in HDG price.
Weekly Analysis:
In the world market: Oil was traded at USD 67-68/ barrel, iron ore at USD 97-98/mt, coking coal at USD192, billet at USD 420-450, and scrap at USD360-365 last week in global markets. Price differences depend on quality and delivery location. Overall, no significant change is observed in global markets. Starting next week, Summer holidays will begin in Western countries and continue for about a month, which will calm the markets. The world is awaiting reconstruction demand from Syria, which could be a good driver for the regional economy.
In the domestic market: Confused and waiting—this best describes the Iranian market. It's confused because it doesn't know what impact energy issues and freight costs will have on prices and production. The supply trend indicates that production limitations are serious. Reduced exports to the UAE, due to new Dubai regulations, affect the profitability of major producers and drive up prices in the market.
The market is awaiting the outcome of negotiations. If the trigger mechanism is activated, export will be severely limited, and the government is aware of this. In these circumstances, economic actors adopt a policy of patience and waiting, which will limit transactions. Last week, 90,000 tons of billet was supplied, with a significant portion being cash transactions, which impacted rebar transactions, and a large volume of rebar was sold. This supply volume trend is expected to continue in the coming week.
Flat products market was sluggish due to power outages at final product manufacturing units, but prices have hit rock bottom. Under current conditions, a price reduction for flat products is not possible.
Iranian producers are losing their markets. The Chinese are providing rebar to Iraq in exchange for oil, while the UAE is refusing imports of Iranian steel due to technical reasons, meanwhile Iranian producers struggle with power cuts. Electricity prices in some parts of China have decreased by up to 30%. The overall outcome of the current situation, given the latest oil export statistics, is an increase in currency rate.
CBI average ex-rate for Steel Products (SANA): Rials 686,129/ 1USD
09 June 2025
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM