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Iran steel market Trend in Week 09th , 2020

Iran steel market Trend in Week 09th   , 2020

Billet

Billet price was upward in Iran domestic market last week. The average price which was USD 452/mt on Saturday, reached USD 456/mt by Tuesday. The main reason for the increase in billet price was upward currency rate.  While the rise in ex-rate was due to Iran blacklisted by FATF, billet price should have been reduced by Iran being blacklisted by the FATF. Because when export level declines, domestic supply would rise and will affect prices negatively.  But market ignored this fact and just paid attention to upward trend of ex-rate, which led to higher billet price.

 However, DRI price was downward last week and was heard up to USD 227/mt. As we approach the end of the year in Iran and only this week or next may truck deliveries be possible, therefore billet production will decline and would affect DRI demand.

Long Products

Rebar average price on last Saturday was USD 497/mt, with the exchange rate rising, it reached USD 522/mt ex-work including 9% VAT on Monday, while due to the CronaVirus problem and the FATF blacklisting, export level will reach the bottom, so there is no reason for prices to be upward. Cronavirus worries made prices downward to around USD 508

/mt by last Wednesday and this trend may continue.

Like rebar, I- beam price improved till last Monday, but then declined. The average price of sizes 14 and 16, which was USD 562/mt on Saturday, reached USD 571/mt on Monday, but fell to USD 549/mt Rials till Wednesday. Market insiders expect the downward trend in long products prices to continue this week too, as the Cronavirus problem is being seen more serious than the exchange rate issue, causing trade level to fall.

Flat Products

HRC 2 mm thickness which was USD 722/mt ex-work including VAT on last Saturday in Esfahan market,  reached USD 745/mt till the weekend. Market was shocked by the increase in price of Mobarakeh Steel co at IME by USD 76/mt. It affected market trend as thicknesses 3 to 15 mm increased from USD 834/mt to USD 875 /mt on Tuesday but dropped to USD 865/mt by end of the week. Oxin co HRP of 12 to 35mm thickness were offered at USD 831/mt on Saturday, limited supply level pushed prices up and reached USD 894 /mt till Tuesday, but on Wednesday was around USD 886/mt. Sellers are worried and buyers have stayed back.

CRC market was faced with high tensions. Earlier in the week, there was no offer until Monday when Mobarakeh Steel co appeared at IME with high prices but its deal was canceled. Any way it showed the way and average price in retail market reached USD 1264/mt but by Wednesday get back to around USD 1146/mt ex-work including VAT. Market participants are worried and can not predict future market trend.

HDG market had a similar condition like CRC, and the sale of Mobarkeh Steel co at base price of USD 970 /mt ex-work excluding VAT at IME was canceled, but had a psychological impact on retail market.

CBI weekly average ex-rate for Steel Products (SANA): Rials 134,298 / 1USD

02  Mar 2020

Mar 2, 2020 13:28
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