Billet price fell during last week in
Iran domestic market, which was caused by stagnation of the market. Lower DRI and
scrap price fueled this trend too.
Billet average price went down from USD 533/mt
to USD 510/mt ex-work including VAT by end of the week.
In Rebar market, price
decreased due to lower billet price and lack of demand from USD 637/mt to USD 611/mt
by end of the week.
I-beam price also
dropped from USD 707/mt to USD 681/mt ex-work including
VAT due to lower demand and declining prices by the mills.
HRC was downward by beginning of the week,
but resistance of traders due to heavy losses made price upward. However, market
inventory is high and previous supplies of Mobarakeh Steel co HRC are on the
way. Talks about lowering next prices by the mill has also scared the market. Two
mm thickness HRC ex-work Mobarakeh was USD 715/mt on last Saturday, which
reached USD 726 /mt by Wednesday.
Oxin co HRP price stayed at around USD 971/mt.
The mill is managing the market and market inventory is limited, besides, traders’
behavior is also not letting market fluctuate much.
CRC market had limited volatility despite
market quiet sentiment. Inventory of this product is almost equal to its
demand. Its average price changed from USD 1096/mt to USD 1073/mt by end of the
HDG market followed HRC downward trend but
in limited range from USD 1036/mt to USD 1022/mt.
China's news is no
longer disappointing, while positive news is also heard, but demand has not
returned yet there. Iron ore is above USD100/mt and oil remains strong.
Therefore, possibility of steel price decrease in coming weeks seems weak.
Dumping by the Russians still appears, but it cannot be continued for them
either, because their prices has reached the bottom too. Flat products market
does not have an attractive outlook due to global economic recession, and possible
improvement of it depends on China's demand.
Therefore, as previous weeks, everybody
is waiting for China market, which if not activated, will cause a very
difficult recession for the whole world. Besides, markets especially Europe are waiting for result
of the Joint Comprehensive Plan of Action (Iran Nuclear Deal) to give
markets some movement.
In the domestic market, basis of prices
is FOB export prices of the mills. Last week, Mobarakeh, Khorasan, Khuzestan
and South Kaveh Steel co held tenders, and their prices will be lower than previous
weeks. The result would be continuation of wait and see policy in the domestic
market, liquidity problem of mills and their closure.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 262,975/ 1USD
01 August 2022
Iran Steel News Bulletin