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Iran steel market Trend in Week 06th , 2020

Iran steel market Trend in Week 06th , 2020

Billet

Billet prices rose last week from USD 401/mt on Saturday to USD 430/mt ex-work including 9% VAT on Wednesday. The reason for the increase in billet price remains the issue of DRI supply shortage and its base price was up to USD 243/mt till Wednesday. It is said that the second production line of Gol-e-Gohar Mining co will start supplying in coming days and this will increase DRI supply. Besides, at IME, prices were upward, therefore market participants were expecting retail prices to stay upward.

Most market participants are not satisfied with the current billet price because rebar price is reaching around USD 485 /mt, while at the current prices there is also no buying interest. On the other hand, these prices put a heavy pressure on the producers' liquidity, which have reduced their production capacity. This upward trend has made many steel traders worried and prefer waiting.

Long Products

Rebar price was up sharply last week. The average price rose from USD 434/mt on Saturday, to USD 475/mt ex-work including 9% VAT by the weekend. The reason for this increase was higher billet price and its supply restriction by some mills. Many traders prefer waiting and do not buy at current level. Many believe that cheap purchased inventories will lead to some price corrections.

Average price of I-beam sizes 14,16 and 18 was USD 526/mt on Saturday then reached USD 533/mt ex-work including VAT by the weekend. Current offer prices of Esfahan Steel co at IME shows that downward trend for I-beam price seems unlikely.   

Flat Products

Last Saturday HRC 2 mm Thickness was offered at USD 598 /mt ex-work Esfahan and USD 566/mt ex-work Ahwaz but by Wednesday in Isfahan reached USD 623/mt and in Ahwaz was USD 590 /mt. The reason behind price increase was inflationary expectations and also higher slab price due to billet price increase. On the other hand, the conversion cost at Ahwaz Rolling and Pipe co has reached around USD 97/mt, therefore, if billet price rises, HRC would be upward too.

Price of HRC thickness 3 to 15 mm increased from USD 655/mt on Saturday to USD 700 /mt by Wednesday. Part of this price increase was due to Mobarakeh Steel co behavior as offered at a base price higher than previous week, which caused prices to rise at IME.  This has made buyers hopeful that they can expect prices to rise from April onwards.

Oxin Co HRP price continued its upward trend. The average price on Saturday for thicknesses of 10 to 40 mm, which was USD 662/mt, increased to USD 699/mt on Wednesday.

CRC started last week at USD 869/mt and reached USD 929/mt by Wednesday. CRC supply level is very limited, while its demand has also fallen due to higher prices.

HDG experienced upward trend like other steel products. The average price rose from USD 804/mt to USD848/mt. Higher HRC price as a raw material made HDG market upward.

CBI weekly average ex-rate for Steel Products (SANA): Rials 123.646 / 1USD

10 Feb 2020

Feb 10, 2020 15:19
Number of visit : 257

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