Iran steel market Trend in Week 41st , 2020

Iran steel market Trend in Week 41st   , 2020


Average billet price in Iran domestic market, which was USD 412/mt ex-work including 9% VAT on last Saturday, reached USD 403/mt by end of the week.

Reasons behind this price reduction were:

1- Lower ex- rate

2- Decrease in the price of billet outside Iran, which was mostly due to the Holidays in China

3- Continued silence of long products market

4- Government efforts to reduce prices

But there is another fact that long products prices have reached its peak and the market needs to breathe.

Long Products

Long products were downward. Average price of rebar dropped from USD 457/mt to USD 447 /mt. Not surprisingly, many mills sold their goods at the same base price announced at IME, while the purchased price was lower than previous weeks’ prices. In fact, the market has shown that it is not thirsty like previous weeks. If this trend is followed for two weeks, it will cause a shortage of rebar supply in the market.

The average price of I-beam size 14-18 in Esfahan market was USD 517 /mt by beginning of the week, which reached USD 510 /mt by end of the week. The reason behind this decrease was supply of size 14 at lower price. I-beam market is being controlled by Esfahan Steel co as the market leader and is less affected by state instructions.

Flat Products

2 mm thickness HRC started the week at around USD 766 /mt ex-work Esfahan, which remained at the same price after some ups and downs at the weekend.

HRC thickness 3 to 15 mm were offered at USD 605 /mt, but by end of the week it reached USD 591 /mt. HRC price has reached its peak and only consumers are looking to buy. Traders are in waiting policy, so there is no reason for higher prices at the moment.

Oxin Co HRP was also faced with a downward trend from USD 591/mt on Saturday to USD 575 /mt until Wednesday. Oxin co manages its market, while its supply is not high. Kavian co HRP size 15 - 25 mm were offered in the market and didn’t change at around USD 534 /mt ex-work including VAT.

CRC supply level was limited. Its market price grew from USD 1017 /mt on Saturday to USD 1024 /mt due to the price increase for some large sizes.

HDG market was almost stable, price of thickness 0.50 - 1.5 mm increased from USD 983 /mt to USD 976 /mt.

CBI weekly average ex-rate for Steel Products (SANA): Rials  287,154/ 1USD

12 Oct 2020

Oct 12, 2020 16:18
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