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Iran Steel Market Trend in Week 45th, 2022

Iran Steel Market Trend in Week 45th, 2022

Billet

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.

 

Long Products

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 VAT.

 

Flat Products

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 scarce.

CRC market was almost unchanged at USD 1063/mt during the week and by Wednesday changed to USD 1070/mt.

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.

 

Weekly Analysis:

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

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

Nov 14, 2022 12:57
Number of visit : 307

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