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Iran steel market Trend in Week 36th , 2019

Iran steel market Trend in Week 36th    , 2019

Billet

Average price of billet was USD 333/mt ex-work including 9% VAT last Saturday, which reached around USD 328/mt by the weekend. One reason behind downward trend was lower debar price and on the other hand, beginning of Religious Mourning ceremonies, because billets bought last week after being converted to finished product should be sold this week, but the upcoming Religious Mourniong Holidays has made market quiet. As a result, price declined. On the other hand, the prospects for the steel market are not optimistic at all. Most market participants expect the price of DRI to drop, this could lead to a drop in billet price near prices seen in first months of 2018. While all the components affecting finished price cost, such as wages, energy costs, transportation, etc., have increased compared to last year.

Long Products

Average price of debar, which was USD 379/mt on Saturday last week, decreased to USD 378/mt ex-work including 9% VAT on Wednesday.

Reasons behind this downward trend were:

1- Lower demand as Mouring Religious Holidays of Moharram were near.

2. The downward trend in billet price and the negative outlook for the steel market

3. The decline in steel exports due to falling prices and stagnation in the world market

Current price of debar have returned to last year's prices, while production costs has increased, on the other hand, demand has declined and made productivity rate lower, leading to higher depreciation costs.

I-beam price was accompanied by some ups and downs. Average prices for sizes 14, 16 and 18 in Isfahan, which started the week at USD 392/mt, rose slightly from Sunday to USD 404/mt ex-work including 9% VAT on Wednesday. Lower supply level of Isfahan Steel co was the only reason behind this trend.

Flat Products

HRC 2 mm thickness was USD 531/mt last Saturday which reached USD 508/mt by the weekend. Ahwaz's product was reported at USD 508/mt on Saturday, but fell to USD 492/mt by the weekend. Price for thicknesses 3 to 15 mm also decreased from USD 505/mt to around USD 503/mt . This was due to high supply of 3 to 6 mm thickness HRC in the market.  On the other hand, the downward trend in market demand contributed to this price return. This trend will continue as the market actually stops this week.

Oxin co HRP was traded at an average price of USD 483/mt on Saturday, but reached USD 472/mt by Wednesday. Some traders insisted on selling their product, and therefore the mill's attempt to maintain the price does not lead to the desired result.

There were also rumors in the market that slab price will decline by USD 27/mt to USD 318/mt, therefore, traders didn’t resist against discount requests of buyers.

CRC price had a stagnant market last week and the average price fell from USD 657/mt to USD 654/mt by Wednesday. There are two reasons for this downtrend:

First, the decline in demand, and the second, supply of some sizes, especially lower price predictions for 0.5 and 0.60 mm thickness CRC, helped to reduce average price of CRC.

HDG, which was priced at USD 733.5/mt on Saturday, fell to USD 725/mt ex-work including VAT on Wednesday. Most important cause of the decrease was Lower price for HRC thickness 2 to 6 mm. Continuing this price drop will definitely pressure HDG market in coming weeks.

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CBI weekly average ex-rate for Steel Products (SANA): Rials 110.189 / 1USD

07 Sep, 2019

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Iran Steel News Bulletin

Sep 7, 2019 15:22
Number of visit : 148

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