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Iran steel market Trend in Week 25th , 2020

Iran steel market Trend in Week 25th  , 2020

Billet

By last Saturday billet average price was USD 353 /mt ex-work including 9% VAT in Iran domestic market, which reached USD 356/mt by Tuesday. Billet transactions at IME were canceled on last Sunday when prices had risen. The cancellation of transactions at IME is a signal to retail steel market to be prepared for price increases, because the cancellation of transactions will delay the delivery of billet to re-rollers.

 In the current situation, DRI is facing with supply constraints. With the start of repairs and limited electricity supply in summer time, DRI production level will decrease. Last week, minimum price of DRI base price was USD 173/mt, but with the current market trend, it will increase significantly, which will be transferred to billet price too.

Two other factors which made billet price rise were higher ex-rate and higher billet export price.

Long Products

Average price of rebar on Saturday was USD 394/mt, which reached USD 400/mt ex-work including 9% VAT by Tuesday last week. As billet supply limitation continues, it is expected that rebar price will improve further.

 Price of I-beam size 14 to 18, which was USD 474/mt ex-work Esfahan on last Saturday, reached USD 479/mt by Tuesday. Size 20 and above were faced with supply constraints. Actually Esfahan Steel co is carefully controlling I-beam supply level and its price.

Export price of rebar is USD 400 – 410/ mt fob Iranian ports. As exchange rate rises, rebar export price will naturally rise in the market, while the market is facing with billet supply limitation.

Flat Products

HRC 2 mm thickness was USD 534/mt ex-work Esfahan on last Saturday and USD 512/mt in Ahwaz market, which reached USD 551/mt in Esfahan and USD 523/mt in Ahwaz by end of the week. Mobarakeh Steel co HRC thickness 3 to 15 mm was not offered by beginning of last week and the market was waiting for IME ( Iran Mercantile Exchange), but the average price, which was USD 528/mt, reached USD 534/mt by Tuesday. Unlike Mobarakeh Co, Oxin co HRP was faced with a limited price reduction from USD 647/mt on Saturday to USD 639/mt on Tuesday. Kavian co HRP was stable.

CRC which was priced at USD 923/mt ex-work including VAT on last Saturday, reached USD 932 /mt by Tuesday. As CRC price didn’t change at IME, even though it was a matching contract, made market calm.

HDG price increased. Limited supply of Seven Diamond Co affected this price increase, so the average price increased from USD 807 /mt to USD 859/mt on Tuesday. Higher ex-rate and its influence on Zinc price also affected this improvement.

CBI weekly average ex-rate for Steel Products (SANA): Rials 181.503 / 1USD

22 June 2020

https://www.irsteel.com

https://www.ifnaa.ir  

 

Jun 22, 2020 15:28
Number of visit : 75

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