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Iran steel market Trend in Week 40th , 2020

Iran steel market Trend in Week 40th  , 2020

Billet

Billet price, which was USD 424 /mt on last Sunday, reached USD 427 /mt ex-work including 9% VAT by end of the week, while nothing important was happening in long products market. Billet upward trend was due to higher DRI price, which its base price was at least USD 209 /mt and up to USD 216 /mt was heard. Another reason for the increase was higher ex-rate and its impact on export prices. Last week, global iron ore price rose again, which would help Iran billet export level improvement.

 

Long Products

Long products were upward during last week in Iran. Rebar, which was priced at USD 455 /mt on last Saturday, reached USD 470/mt ex-work including 9% VAT by end of the week. Base price of rebar at IME ( Iran Mercantile Exchange)  had an increase in its floor price, and this led retail market too. Besides, actually higher billet price made rebar base price at IME upward and also ex-rate improvement affected the market. Anyway, what is remarkable is trades volume, which is getting smaller every day.
I-beam price had a downward trend and reached USD 531 /mt from USD 539 /mt on last Saturday. The reason for the decrease in price was last cheap purchased products which came to the market, but with the guidance of Esfahan Steel co, the fall in price was temporary and slow.

 

Flat Products

Price of 2 mm thickness HRC was USD 756 /mt on last Saturday in Esfahan market and reached to USD 785 /mt by Wednesday. The reasons behind upward trend were supply constraints and exchange rate increases. Price of HRC 3 to 15 mm thickness increased from USD 605 /mt to USD 618 /mt ex-work including VAT. Higher prices were due to upward trend of prices at IME, besides, supply level was being controlled.

Oxin co HRP had an average price of USD 582 /mt on Saturday, which reached USD 613 /mt by end of the week. Restriction of Oxin co supply is the main reason for this price increase.
Kavian co HRP had the same trend similar to Oxin co, its price increased from USD 520 /mt to USD 543 /mt by week- end.

CRC price, which was priced at USD 1022 /mt on last Sunday, reached USD 1051 /mt by end of the week, HDG price was also upward from USD 940/mt to USD 1002/mt.
Common reasons for these price increases are the uptrend of semi-finished steel products which is affected by pellet supply constraints and higher ex-rate.

What influences the weekly changes is mainly exchange rate, but the long-term trend caused by the problem of raw material supply is still present.

 

CBI weekly average ex-rate for Steel Products (SANA): Rials  277.859/ 1USD

05 Oct 2020

 

Oct 5, 2020 13:32
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