Iran steel market Trend in Week 35th , 2020

Iran steel market Trend in Week 35th  , 2020


Average price of billet on last Saturday was USD 409/mt, which reached USD 429/mt ex-work including 9% VAT by Wednesday. The reason behind higher billet price was improvement in export price, as well as the increase in ex-rate. Apart from these two issues, billet in Iran market had reached its bottom and was not in balance with DRI price, therefore price raised.

Reports indicate that price of export billet has risen again in the past week, but all those involved in foreign trades are worried that prices have reached their peak. As domestic demand has declined, when global prices start dropping, Iran billet price won’t rise any more.

Due to the Mourning Holidays of Muharram, the only factor influencing billet price in coming days would be ex-rate.

Long Products

Average price of rebar on last Saturday was USD 465 /mt, but market recession made it decline to  USD 442 /mt ex-work including VAT. The downward trend in prices caused buyers to sit back and wait until Monday, when billet was offered at IME. With the confirmation of billet deal at IME, on Tuesday, rebar price rose to USD 476/mt, but on Wednesday, the market calmed with the supply of rebar at IME, and the average price reached USD 467/mt. Some mills also announced prices up to USD 472/mt ex-work including 9% VAT, but some parcels of rebar offered on IME were not sold. The reluctance to buy kept the wait-and-see attitude in the market.

Price of I-beam size 14 to 18 on Saturday was USD 619 /mt, which reached USD 629/mt by Wednesday. As Esfahan Steel co is market leader and controls it, any significant decline in I-beam price seems unlikely.

Flat Products

HRC 2 mm thickness declined from USD 774/mt to USD 754 /mt ex-work Esfahan by end of the week. Mobarakeh Steel co HRC thickness 3 to 15 mm was USD 703/mt on last Saturday, but dropped to USD 687/mt by end of the week. Upcoming Mourning Holidays on one hand and the weak demand on the other hand were reasons behind this market sentiment. Market participants believe that due to Mobarakeh Steel co controlling policy, HRC price won’t decline any more.

Oxin Co HRP thickness 10 -40 mm, which was priced at USD 713/mt on last Saturday, dropped to USD 709/mt ex-work including 9% VAT by end of the week. Kavian co HRP thickness 12 to 25 mm was USD 649 /mt on average, which decreased to USD 639/mt by Wednesday. The reason for this decrease in prices is lack of demand and market sentiment.

CRC thickness 0.50 to 2.5 mm, which was priced at USD 1080 /mt on last Saturday, reached USD 971/mt by Wednesday. The decrease in demand was one of the factors affecting prices

HDG thickness 0.50 -1.5 mm was priced at USD 1031/mt on Saturday, which reached USD 1010 /mt ex-work including 9% VAT by Wednesday. Lower HRC price and market recession made HDG price downward.

CBI weekly average ex-rate for Steel Products (SANA): Rials 199.015 / 1USD

31 Aug 2020

Aug 31, 2020 10:27
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