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Iran steel market Trend in Week 17th , 2020

Iran steel market Trend in Week 17th , 2020

Billet

Over the past week billet price was almost stable in Iran domestic market and only slightly improved on Wednesday. Its average price on Saturday was USD 367 /mt until Monday it reached USD 363 /mt but on Wednesday it returned to USD 378/mt ex-work including 9% VAT. Billet market is full of ambiguities. On the one hand, the government is trying to keep the base price in the range of USD 322 /mt at IME. On the other hand, many billet producers are still not back to work. Billet demand for export is not as normal.

Last week, DRI and pellet were being offered in the market. DRI base price excluding VAT was up to USD 193/mt and pellet price was heard USD89 -92/mt. Most traders have stayed back because billet producers are cautious as are facing difficulties in selling their products, so like the last quarter of last year, no one is looking to pre-purchase DRI. Some market insiders expect that With the new export duties for pellets and DRI, DRI supply level will continue to rise, and its base price will probably fall to USD 179/mt , which of course depends on the situation of billet market.

Long Products

Rebar price in Iran domestic market was improving last week, from USD 422/mt on Saturday to USD 433/mt ex-work including VAT on Wednesday. The reason for this increase in prices in the first days of the week was higher level of purchases by traders to reduce their average purchase prices. Higher ex-rate due to Duabi market closure due to quarantine also affected prices on Wednesday.

The largest export customer of Iran's rebar is Iraq, where construction projects have declined due to falling oil prices. It is unknown at this time what will happen to Iran's rebar market if export level decline more. Most market participants predict that rebar price will need to be adjusted due to declining demand during the holy month of Ramadan.

I-beam price was also upward due to controlling policy of market leader Esfahan Steel co. Its price rose from USD 472 /mt to USD 518/mt ex-work including VAT. Insiders believe that I- beam market still has room for growth.

           

Flat Products

Price of 2 mm thickness HRC on last Saturday was USD 533/mt ex-work Esfahan, which reached USD 573/mt by Wednesday. HRC is not being offered by other mills regularly. Thicknesses of 3 to 15 mm were offered on Saturday at USD 616/mt, but from Sunday onwards, due to the resistance of the sellers, the price went up and reached USD667/mt by the end of the week. Highest price increase was related to 8 mm thickness, which increased by USD 72 /mt.

Oxin co HRP thickness 10 -40 mm  improved by USD 17 /mt to USD 730/mt by Wednesday. Its limited supply level has helped prices. Kavian Co HRP is becoming more stable in the market. Last Saturday, the average price of thickness 15-45 mm was USD 687 /mt, which reached USD 698 /mt by Wednesday.

CRC market was in recession, with few buyers in the market, despite supply constraints that pushed up prices over the past week. Average price of thicknesses 0.40 -2 mm on Saturday was USD 911 /mt, which reached USD 937/mt by Wednesday.

Higher HRC price made HDG price also upward and the average price rose from USD855/mt to USD 908/mt on Wednesday.

CBI weekly average ex-rate for Steel Products (SANA): Rials 139.657 / 1USD

27 Apr 2020

https://www.irsteel.com

https://www.ifnaa.ir  

Apr 27, 2020 14:14
Number of visit : 85

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