Billet price went down from USD 573/mt to
USD 559/mt ex-work including VAT. Despite the fact that foreign currency rate was
increasing and supply level at IME was limited, but stagnation of market made
billet price downward.
In Rebar market,
demand, afraid of further reduction, retreated completely, despite the fact
that the inventories are not high, but buying interest is scarce too, as a
result, prices started a downward trend from USD 662/mt to USD 652/mt by end of
Despite weak demand,
limited supply of beams made its market stable at around USD 718/mt ex-work including VAT.
Downward trend of Mubarakeh Steel co HRC
was due to the rumors circulating in the market along with the weak demand, and
this trend is likely to continue. 2 mm thickness HRC ex-work Mobarakeh was USD 778/mt
on last Saturday, which reached USD 728 /mt by Wednesday.
Oxin co HRP had a downward trend due to weak
demand, but the mill’s market control made downward trend limited from USD 989/mt
to USD 984/mt.
CRC market was quiet with lack of demand
expected to be continued in coming weeks. It was changed from USD 1107/mt to
USD 1104/mt by end of the week.
HDG had a downward trend due to lower HRC
price and limited demand from USD 1098/mt to USD 1079/mt.
In the global market, China property
sector problem is spreading to its banking system. The latest news shows that Chinese
government is considering an emergency loan due to the dangerous situation of
Chinese banks that are involved in the property sector. While Coronavirus
spread in China has not decreased, it seems that higher infections in other
countries such as India and Iran has resumed. If Chinese market reacts quickly
to the government's policies, the fall in steel prices will stop. On the other
hand, Russian dumping in the steel market has reached its bottom and in the
past weeks we have seen an increase in prices or their stability.
But in Iran, due to stagnation of export
market as well as limited domestic demand, prices have been falling. Power cuts
has not only affected supply side but also the demand level too, and as a
result, most of economic players who see prices falling back on a daily basis
have stopped trading. Last week, it became clear that while mills like
Khuzestan Steel were seeking to export billet at a price above USD520/mt, a
large shipment was sold at a price of about USD460/mt fob, this news created
tension in the steel market.
The outlook for the coming weeks is not
clear as market participants are holding a waiting policy. The current
recession situation along with the recession in the global market will reduce
production and will reduce export and foreign exchange, which will increase
In the month of August, production and
supply will reach its minimum due to power cuts and mills holidays. On the
other hand, the demand will also decrease because Mourning Holidays of Month of
Moharram is also coming. Overall, this will cause the steel market to shrink
CBI weekly average ex-rate for Steel
Products (SANA): Rials 260,993/ 1USD
25 July 2022
Iran Steel News Bulletin