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Iran Steel Market Trend in Week 25th, 2022

Iran Steel Market Trend in Week 25th, 2022


Billet price was downward during last week in Iran steel market from USD 649/mt to USD 606/mt ex-work including VAT. Stagnation of long products market was the main reason behind this trend, and on the other hand, sharp fall in global markets was the other reason for lower billet price. Government's efforts to control billet market and cancelation of Khuzestan steel co deal at IME as a reference mill helped create a sentiment of distrust in the market.

Long Products

Rebar price had a downward trend from USD 740/mt to USD 714/mt ex-work including VAT due to lower global prices and declining prices at IME. Government signals to lower prices led to further market frustration.

I-beam price was also down from USD 698/mt to USD 687/mt , which was affected by similar factors in the rebar market.

Flat Products

Mobarakeh Steel co 2 mm thickness HRC was USD 921 /mt on last Monday, which reached USD 886 /mt by Wednesday. Weak demand, declining prices in global market and talks of further price cuts for Mobarakeh Steel co prices at IME lowered prices in spot market.

Despite scarcity of some Oxin co HRP items, downward trend in prices followed from USD 1033/mt to USD 1017/mt and seems to continue as global prices are downward too.

Due to power cuts, CRC consumption has reached its minimum level and this is the main reason for the price reduction as by last week it was down from USD 1166/mt to USD 1156/mt ex-work including VAT. HDG was also downward from USD 1179/mt to USD 1168/mt due to lower HRC price as well as demand.

Weekly Analysis:

In global market, inflationary pressures and governmental interferences in economic matters has deepened the current recession, and Chinese market recession has strongly contributed to this negative trend. As a result, US export scrap price fell to below USD 300 /mt FOB on Wednesday, with global billet and slab price expected to fall below USD 500/mt in the coming weeks. Under these circumstances, everyone hopes that Chinese market activity will stimulate global markets. Ukraine war also along with the global recession, is not a small phenomenon.

 But in Iran market:

Government persists on its policies. One of the principles of economic surgery is to keep the window of foreign trade open, which is completely closed due to sanctions. On the other hand, Russia's dumping on oil and steel has called into question our exports in these two sections too. The result would be a decrease in export and an increase in the currency rate, which will lead to inflationary pressures. It is rumored that the Commodity Exchange will make changes to its pricing system and formal exchange rate will increase by to support exports. This would lead to higher base prices of steel at IME. In any case, incomplete economic surgery with a recession in the global market has two main consequences. The first is a recession and the second is an increase in the exchange rate.

CBI weekly average ex-rate for Steel Products (SANA): Rials 252,903/ 1USD

27 June 2022


Iran Steel News Bulletin



Jun 27, 2022 12:54
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