price rose due to improvement of DRI price and market expectations, but it
stopped at the weekend due to the upcoming holidays. Billet average price was
around USD 510/mt ex-work including VAT.
Rebar was facing with limited supply due to coming Holidays and market
is waiting to see what happen in coming days after Holidays. Rebar price
changed from USD 592/mt to USD 590/mt.
I-beam market stayed almost quiet and average price changed from USD
698/mt to USD 687/mt ex-work including VAT. Market will wait for a week to see
the real supply and demand level.
Price of 2 mm thickness HRC ex-work Mobarakeh was USD 717/mt on Sunday,
which reached USD 734 /mt by Wednesday. Oxin co HRP rose a little due to resistance
of suppliers from USD 877/mt to USD 886/mt. Its demand is very weak and had
made market quiet.
Limited supply and market resistance against the stock market raised CRC
price from USD 1012/mt to USD 1033/mt ex-work including VAT.
HDG had a quiet market at around USD 990/mt, which indicates stagnation
of the market, the price cannot decrease because it has reached its bottom and buyers
cannot afford to pay higher prices.
The world market is calm. Oil still fluctuates in the range of USD 100 /barrel,
but efforts of the West to determine price ceiling for Russian oil show concern
for the rise in energy prices. The West is trying to calm the demand by
increasing the interest rate, but as the interest rate gap between USA , Europe
and China increases, capital will go to USA and Europe and China will face
recession. Some says European mills will be closed due to high cost of energy,
and this is a good opportunity for other countries to export steel to Europe,
but this idea is not correct because the demand will decrease.
In the domestic market, recession is slowly showing its effects, most
of mills do not have enough inventories because the market is not stable, they
do not have the confidence to store more inventory.
In the current situation, everyone has adopted a wait-and-see policy. Indeed,
this situation may not last long. With the decrease in the price of oil and
steel exports, the exchange rate will change, which will have an immediate
effect on the price of steel products.
weekly average ex-rate for Steel Products (SANA): Rials 268,265 / 1USD
Steel News Bulletin