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Iran steel market Trend in Week 30th , 2020

Iran steel market Trend in Week 30th  , 2020

Billet

On last Saturday, billet price was USD 483/mt. With the exchange rate falling on Monday, the market collapsed. Everyone was waiting for the supply of billet in IME on Tuesday but it didn’t happen.

 All eyes were on rebar deals at IME on Wednesday. By Wednesday, billet price reached USD 429 /mt, while some mills were offering billet at less than USD 422/mt.

Meanwhile, DRI supply level is still facing problems, but the decrease in the price of billet stopped trading and this made DRI price downward, as Mianeh Co DRI base price was heard at USD 232/mt, which is at least USD5/mt lower than a week ago.

There are two views in the market at the moment:

At first glance, the stronger one expects prices to fall slightly and remain at the same level. This group argues that ex-rate is falling and demand is falling, both in the domestic market and for exports. The group believes that prices will return, but require a one-month break.

The second view believes that the depreciation of ex-rate on one hand will lead to a rapid decline in exports, as a result of which the exchange rate will rise again, and this will quickly push the market upwards.

Long Products

Rebar market started last week at USD 517/mt on Saturday, reached its peak on Sunday and broke the record of USD 535/mt, but after that, started to drop to USD 483/mt on Wednesday. Average price of I-beam sizes 14-18 on last Saturday was USD 665 /mt, it reached USD 673/mt on Sunday, started to decline and decreased to USD 622 /mt.

Flat Products

Price of 2 mm thickness HRC was USD 848/mt ex-work Esfahan on Saturday and USD 773/mt ex-work Ahwaz until it reached USD 726 /mt in Esfahan on Wednesday. HRC thickness 3 -15 mm of Mobarakeh Steel co, which was priced at USD 712/mt on Saturday, decreased to USD 626/mt by last Wednesday. Downward trend was also seen for Oxin co HRP thickness 10-40 mm and the average price decreased from USD 780 /mt to USD 717/mt. Kavian Steel co HRP sizes 15 to 25 mm was offered at USD 645/mt on Saturday, but it dropped to USD 632/mt by Wednesday.

CRC thickness 0.40 -2.5 declined from USD 1071/mt on last Saturday to USD 1012 /mt by Wednesday. This trend was also seen in HDG market and its price decreased from USD 1112/mt on last Saturday to USD 1060/mt. The downward trend in prices is only due to the prevailing psychological atmosphere in the market and there is no other reason for it.

CBI weekly average ex-rate for Steel Products (SANA): Rials 213.411 / 1USD

27 July 2020

Jul 27, 2020 14:52
Number of visit : 47

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