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Iran Steel Market Trend in Week 44th , 2022

Iran Steel Market Trend in Week 44th   , 2022

Billet

Billet market sentiment was negative during last week in Iran but by end of the week higher ex-rate made prices up. Its average price declined from USD 487/mt to USD 485 /mt and then improved to USD 486/mt ex-work including VAT.

 

Long Products

Rebar price was stable at around USD 552 /mt. Higher ex-rate slightly increased prices. Rebar price has reached its bottom according to the average price of billet, and any lower price may stop production.

Esfahan Steel co market management made I-beam price almost stable. Its average price changed from USD 647/mt to USD 642/mt.

 

Flat Products

Mobarakeh steel co HRC 2 mm thickness was USD 706/mt on Saturday, which reached USD 727 /mt ex-work by Wednesday. Flat products market was generally calm. On Tuesday, news of the stoppage of a trader shocked the market. Some market participants, worried that this will happen again in the future, stopped trading, and the market stopped. With the increase in currency rate, prices did not fall.

Oxin co market management made HRP almost unchanged at USD 872/mt.

CRC price was around USD 998/mt during the week as limited supply helped the market. By Wednesday price improved to USD 1013/mt.

HDG price changed from USD 930/mt to USD 937/mt as higher ex-rate didn’t let prices decline.

 

 

Weekly Analysis:

China market confidence is improving, priority of economic issues to Covid policies is the main reason for this. But last week, drop in demand lowered price of billet and slab in global markets.

In Iran, prices have reached the bottom and more drops will lead to the closure of production lines. Steel producers spent first 6 months of the year badly and have hope for remaining months of the current Iranian Year. Global steel demand is not in a good condition; this can worsen the production situation inside Iran too.

The recent decision of Administrative Justice Court says purchase and export of steel is free for everyone. It also says that "domestic mills are not required to prioritize domestic demand over export," so the rules of the commodity exchange regarding priority of supply to the domestic market and export of surplus products will be lost. Maybe this vote is a problem for some people, but in a period of three months, it will cause a sharp increase in export and will shake the stagnant domestic market, which is severely suffering from weak demand. But the most important issue of this vote is its impact on raw materials.

In the event of implementation of this decision, that is, the single rate currency and liberalization of exports, large mills will only engage in export, and small mills, many of which are working with reduced capacity or are closed, will focus on the domestic market, and the market will be balanced.

 

CBI weekly average ex-rate for Steel Products (SANA): Rials 286,102/ 1USD

07 Nov 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

Nov 7, 2022 13:02
Number of visit : 329

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