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Iran Steel Market Trend in Week 14th , 2022

Iran Steel Market Trend in Week 14th , 2022


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.

Long Products

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.

Flat Products

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 including VAT

Weekly Analysis:

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 inflation rate!!!

CBI weekly average ex-rate for Steel Products (SANA): Rials 243,507/ 1USD

11 Apr 2022


Iran Steel News Bulletin



Apr 11, 2022 15:34
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