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Iran Steel Market Trend in Week 33rd , 2022

Iran Steel Market Trend in Week 33rd , 2022

Billet

Billet price was downward from USD 535/mt to USD 517/mt ex-work including VAT in Iran domestic market. Global prices improved a little in some places, and base price at IME (Iran Mercantile Exchange) also increased on weekly basis but possibility of lifting sanctions and lowering exchange rate made prices downward.

Long Products

In rebar market, despite positive sentiment of beginning of the week, with the news about progress of nuclear talks, market became almost stopped and this led to lower prices as average rebar price dropped by USD 11/mt to USD 599/mt by end of the week.

Despite limited supply level, lower demand and market’s waiting policy made I-beam average price decline by USD 10/mt to USD 680/mt ex-work including VAT.

Flat Products

Price of HRC 2 mm thickness ex-work Mobarakeh was USD 722 /mt on last Saturday, which reached USD 691 /mt by Wednesday. Oxin co HRP was almost unchanged as the mill is controlling the market. Possibility of mill maintenance in coming week will make its supply level more limited. Its average price was changed from USD 951/mt to USD 938/mt ex-work including VAT. CRC price was down from USD 1053/mt to USD 1040/mt. Lower sale price of Mobarakeh steel co product affected its market trend.

Lower HRC market made HDG price also downward from USD 985/mt to USD 975/mt by end of the week. Lower ex- rate also reduced zinc price, which naturally affect HDG market.

Weekly Analysis:

In global markets, China is not really active yet. In order to comply with environmental issues as well as power cuts, steel production in China will decrease, which will affect its market inventory too. On the other hand, billet price has slightly improved. Oil is still hovering around USD100/barrel, so the possibility of much billet price decrease is weak. Drought in Europe and higher energy costs have increased steel production cost in Europe to rise, this has affected European projects. In any case, it seems that global prices have reached their bottom with a fluctuation range of USD 20-30/mt and the possibility of more reductions is not much likely.

In domestic market, politics, not economics, is ruling the market at the moment.

The political atmosphere caused by possible imminent signing of the JCPOA (Nuclear Deal) has kept all economic activists in a state of waiting. General expectation is that with approval of the JCPOA, currency rate will drop sharply, but this is not possible due to several economic reasons. Of course return of blocked moneys from abroad will greatly open hands of the government to settle its debts to the banking system and industries will be more active. But in the current situation, due to the waiting mode that traders have assumed and the heavy losses they have experienced due to the wrong policies of IME, production is coming to a halt. In the current situation, waiting policy will continue.

CBI weekly average ex-rate for Steel Products (SANA): Rials 263,247 / 1USD

22 August 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Aug 22, 2022 13:12
Number of visit : 165

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