Due to the recession
in the rebar market, billet price was downward, but higher DRI price and the
upward trend in export market will not allow prices to fall in IME (Iran
Mercantile Exchange). Average billet price was USD 676/mt ex-work including VAT
by end of the week.
Also last week,
according to Metal Bulletin, average price of Iranian export billet increased by
4% to USD 710-730 /mt FOB. By end of week 10th it was USD680-700/mt FOB.
The rebar market was quiet. The main reason was cheap inventories bought at
the end of last year, but the base price announced at IME last week does not
allow the price to return much. Rebar price was down from USD 753/mt on last
Monday to USD 748/mt ex-work including VAT by Wednesday.
I-beam had a downward trend. Demand for this product has fallen sharply,
and the closure of exports to Afghanistan has been further affected market
sentiment. It was down from USD 678/mt to USD 675/mt ex-work including VAT.
Price of 2mm HRC ex-work Mobarakeh on last Monday was USD 1068/mt, which reached
USD 998 /mt by Wednesday. HRC market which had been on an upward trend since
late March, has calmed down. We have to wait for the announcement of slab price
at IME, which is the base for HRC pricing.
Oxin co HRP had an upward trend by beginning of the week but as the market became
quiet, price was adjusted. Slab has not been offered on IME since the end of
March, so the selling price of Oxin co HRP is not clear.
CRC market was stable at around USD 1218/mt ex-work including VAT. Cancellation
of the Mobarakeh Steel co deal on IME shows that we have to wait and see strength
of the market. Of course, last year's offers are still circulating in the
market. HDG market was relatively quiet. Russian sanctions and the Ukraine conflict have
pushed up global zinc prices. HDG price ended the week at USD 1223/mt ex-work
Iran steel market
has become sensitive since the beginning of Ukraine war and domestic prices have
risen. On the other hand, export of billet during the Nowruz Holiday has been
accelerating and this trend will continue. Turkish buyers turn cheap Iranian billet
into their own rebar and export their billet products. The difference between price
of Iranian export billet at about USD 700/mt and the Turkish export billet at USD
820/mt promises that this situation will continue. In the flat products sector this
gap is more. Iran slab has been exported at USD 720/mt FOB. The same slab cargo
has buyer at USD 980/mt cfr Italy but with LC payment term which we can’t
afford to proceed at the moment. In fact, price of Iran billet and slab has a
month time to get closer to the world level. On the other hand, domestic market
has not been activated yet much after New Year Holidays and the demand has not
entered the market, so we have to wait until next week and wait for the market
trend. A market that is affected by export demand is so strong that it will
simply cover the domestic market downturn. The point that should not be
forgotten is that the suspension of bank facilities has slowed down the demand.
It should be noted that with the increase in demand for transit of goods from
May, it is possible that shipping costs will increase and we may be faced with transportation
issues too. The threat of power outages is also on the way. If this is the
case, then the recession in domestic market may be a blessing to control
CBI weekly average
ex-rate for Steel Products (SANA): Rials 243,507/ 1USD
11 Apr 2022
Iran Steel News