Iran steel market Trend in Week 42nd, 2020

Iran steel market Trend in Week 42nd, 2020


Billet price in Iran domestic market remained almost stable despite its ups and downs during last week. On Saturday, its average price was USD 474.3 /mt and on Wednesday USD 474/mt ex-work including 9% VAT, while its base price at IME ( Iran Mercantile Exchange) increased compared to previous week. The reason behind the increase at IME was higher exchange rate, while the final purchased base price was USD 414/mt by average, and DRI base price was offered within USD 226 - 230 /mt, depending on the place of delivery which was almost same as a week ago.

News about falling iron ore and billet price in global markets could lower the base price of billet at IME, in which case long products market will be faced with a severe recession.

Long Products

Average price of rebar, which was USD 516/mt on last Saturday, reached USD 525 /mt until Wednesday, while many mills were offering discounts on sales because the market was quiet. Higher rebar price was due to the increase in base price of billet and rebar at IME. Some market participants believe that rebar price is at the bottom level and will not decrease more. Others believe that recent upward trend is due to higher ex-rate, and if ex-rate decline, rebar price will be downward.

I-beam size 14 to 18 on last Saturday was USD 585/mt, but by end of the week it reached USD 591 /mt ex-work Esfahan. Esfahan Steel co managed to sell its I-beam on IME at a higher price than previous week, while its delivery is in January. This means that I-beam price will increase in the coming months.

Flat Products

HRC 2 mm thickness started the week at USD 914 /mt ex-work Esfahan, which reached USD 902/mt by end of the week. Efforts of profile producers to offer at the end of December at a price of about USD715/mt instead of USD 834 /mt was part of the reason behind lower HRC price.

Average price of Mobarakeh Steel co HRC 3 to 15 mm thickness, on last Saturday was USD 682/mt, which reached USD 687 /mt by end of the week.

Oxin Co HRP thickness 10-40 mm were priced at USD 660/mt on Saturday, which reached USD 665/mt by end of the week.

At the moment HRC demand is very limited in Iran. On the other hand, its price in warehouses in Tehran is cheaper than in Ahwaz market. This means that Tehran warehouses are not empty and cheap purchases are not yet sold while slab price has risen at IME. Lack of demand is a problem that can be seen in all steel products markets at the moment. If this situation continues for a month, it will definitely affect billet and DRI price in Iran market.

CRC was priced at USD 900 /mt on last Saturday, but reached USD 1245/mt ex-work including VAT by Wednesday. Higher ex-rate made it upward.

HDG price was also upward and increased from an average of USD 1150 /mt to USD 1224/mt. Regardless of ex- rate changes, which is the main cause of price increase, the issue of controlling Esfahan warehouses has affected HDG price.

CBI weekly average ex-rate for Steel Products (SANA): Rials  251,704/ 1USD

19 Oct 2020

Oct 19, 2020 12:30
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