Billet price improved during last week in Iran
domestic market from USD 519/mt to USD 522/mt ex-work including VAT thanks to
the news about decision of the Court of Administrative Justice and, more
importantly, exchange rate fluctuations. But lower ex-rate
calmed the market by end of the week.
Rebar market was up due to fluctuation of
currency rate from USD 585/mt to USD 599/mt ex-work including VAT during the
week, but it calmed down over the weekend. Prices at IME are still
higher than physical market, this is a sign that the government is trying to improve
exports, because this process has been going on for weeks.
Ex-rate fluctuation also affected I-beam
market as price changed from USD 185333/mt to USD 188833/mt ex-work including
Mobarakeh steel co
HRC 2 mm thickness was USD 786/mt on Saturday, which reached USD 768
/mt ex-work by Wednesday. Prices decreased as Mobarakeh Steel co supply
level increased, but fluctuation of exchange rate helped the market.
Oxin co HRP price
improved from USD 913/mt to USD 916/mt as ex-rate fluctuated and supply was
CRC market was
almost unchanged at USD 1063/mt during the week and by Wednesday changed to USD
With the increase in HRC price and exchange
rate, HDG price was also up from USD 1018/mt to USD 1068/mt by end of the week.
There are signs of improvement in demand in
China, but its real effects will probably be shown next year. Oil price is still
around USD 90 -100/ barrel, and for this reason, global billet price has not
fluctuated seriously. Although scrap price
is decreasing, its down ward trend is not serious. In fact, flat and
long products prices have reached the bottom, but demand is also weak, and this
has made the market sensitive to any market news.
In Iran, there is no hope for improving demand
level at the moment. Funds have moved
towards other markets with more liquidity. In this situation,
the dependence of stock market transactions on delayed payment sales is
increasing every day. The government is
trying to open up exports, which means that prices will slowly rise. However, as the
price increases, the market becomes smaller every day. The impact of this
trend on products like billet is faster than on slab. In any case, the market
in the coming weeks would be more influenced by the currency market and
government policies than by the stopped demand.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 274,658/ 1USD
14 Nov 2022
Iran Steel News Bulletin