Billet price remained almost unchanged during
last week in Iran domestic market between USD 487-489/mt ex-work including VAT. Long products market
was quiet and delayed payment sales at IME (Iran Mercantile Exchange) hold
billet price stable.
Rebar had a quiet market at around USD 555/mt. Domestic demand is
severely limited and market insiders are just looking for export market to
I-beam price stayed at around USD 653/mt with
market management by Esfahan Steel co but demand level is not interesting.
Mobarakeh steel co
HRC 2 mm thickness was USD 707/mt on Saturday, which reached USD 714
/mt ex-work by Wednesday. Market experienced some fluctuations. It cannot tolerate further price
reduction and is waiting for slab price improvement to help HRC price.
Lack of supply from Oxin
co and lowering market inventory made HRP average price up from USD 864/mt to
USD 873/mt ex-work including VAT.
CRC had a stable market at USD 1003/mt and did
not change much because its supply level is being managed.
HRC stable trend made HDG also quiet with its
price staying around USD 937/mt ex-work including VAT.
Global markets are calm and the fight against
inflation continues. Oil price is on a downward trend and will probably stay
below USD90/barrel. Of course, there is no hope for an increase in steel demand
at the moment, and there is no hope for improvement in Chinese market until end
of the year.
domestic market, higher export increases confidence about a temporary
improvement. Steel market suffered a lot of losses in the first six months of
the year and has only 4 months until the end of the Iranian calendar to make up
for it. Therefore, it would advance by using credit sales or increasing export
level or finally changing the exchange rate and the role of banks in providing
credit is very important. In the conditions of economic surgery, the government
must organize economic structure, and in the condition of sanctions, it is like
building a house under a heavy rain. In any case, this
structure should be reformed, but if the door to foreign trade is not opened,
the pressure on the government will remain heavy.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 285,489/ 1USD
31 Oct 2022
Iran Steel News Bulletin