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.
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
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.
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
Iran Steel News Bulletin