Billet price had a
downward trend during last week in Iran domestic market by USD 2 /mt to USD 506/mt
ex-work including VAT by end of the week, which was due to the weakness of demand.
Generally, market was in a waiting mood through the week.
Rebar price was also down from USD 590/mt
to USD 588/mt. Lower billet price and market wait and see policy made market participants
I-beam price was upward
from USD 662/mt to USD 664/mt, but only for Esfahan Steel co products and other
mills had no buyer. Actually the mill’s market management made price upward.
Traders’ resistance and heavy losses they
experienced from previous purchases, made HRC 2 mm thickness price up by USD 4/mt
to USD686/mt ex-work Mobarakeh, but its market remained stagnant.
Since Oxin co HRP price has reached below
the mill’s price in the market, its sellers resisted against downward trend,
but finally market was down from USD 952/mt to 940/mt ex-work including VAT.
Due to stagnation of demand, CRC price
was downward from USD 1039/mt to USD 1023/mt. Profit margin of CRC is very
limited and sometimes with loss for traders, so there is no incentive to invest
in its market.
HDG had a downward trend from USD 965/mt
to USD 945/mt, lower price of thickness 0.50 and 0.60 mm was the main reason
for the decrease in the average price of this product. Lower ex-rate and stagnation
of HRC market also made this trend worse.
Foreign markets are not significantly
different from last week, the economic recession in Europe and USA has
intensified and this has affected investments, as a result steel demand has
reached its minimum level too. Downward trend of housing prices in USA has
reduced the incentives for construction. China's housing sector continues to
stay quiet, it neither stops nor accelerates, so we must wait for the cold
season, which changes the shape of demand.
But in Iran, everything has been affected
by the Nuclear Talks, Iran's economic environment is filled with politics, as a
result, it is practically impossible to make a decision in this market. What is
certain is that the current situation cannot continue.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 263,695 / 1USD
29 August 2022
Iran Steel News Bulletin