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Iran Steel Market Trend in Week 35th, 2022

Iran Steel Market Trend in Week 35th, 2022

Billet

Billet price was downward during last week in Iran domestic market from USD 507/mt to USD 503/mt ex-work including VAT. Stagnation of market along with higher supply at IME was the reason for this price reduction. At the same time, high price of billet offered at IME keep buyers back. Naturally, prices will decrease in coming days, maybe IME prices will be closer to physical market prices by end of September.

Long Products

Rebar price was downward due to weak demand from USD 592/mt to USD 585/mt. Generally, seems that prices have reached the bottom and the possibility of further price reduction is weak.

I-beam had a quiet market and its average price changed from USD 673/mt to USD 679/mt by end of the week.

Flat Products

Mobarakeh Steel co HRC price improved slightly due to resistance of traders against current losses. Confusion over prices of the mill in next offers at IME has kept the market depressed. Average price of HRC 2 mm thickness ex-work Mobarakeh was USD 683/mt on last Saturday, which reached USD 686 /mt ex-work including VAT by Wednesday.

Oxin co HRP had a downward trend from USD 938/mt to USD 917/mt because of higher supply, but main reason is lack of demand. Maintenance schedule of the mill will reduce supply level during next 10 days.

CRC price was slightly downward from USD 1012/mt to USD 1010/mt. Demand level has reached the bottom and prices don’t have much room to decrease.

Despite changes in HRC market, HDG price remained unchanged at USD 944/mt as any price reduction space is limited.

Weekly Analysis:

Stagnation of China market continues; oil price is still around USD100 /barrel. It means that global steel price has reached its bottom despite increase in its cost prices as demand is low. In the current inflationary situation, the only hope is China market, which is not positive yet, but from next month onward, cold weather will limit scrap supply and increase its price in global markets.

In Iran, wait and see policy still prevails, market inventory level has reached its minimum, but financial difficulties of some sellers put more pressure on prices every day. Pellet and DRI price have reached the bottom and further reduction will lead to losses and stoppage of production. In fact, the crisis that started with finished products market is now moving to raw materials section. Stopping production in this sector will have heavy losses for entire steel industry.

CBI weekly average ex-rate for Steel Products (SANA): Rials 265,107 / 1USD

05 Sep 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Sep 5, 2022 14:12
Number of visit : 122

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