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Iran Steel Market Trend in Week 48th, 2022

Iran Steel Market Trend in Week 48th, 2022

Billet

Iran domestic billet market had a downward trend during last week due to stagnation of long products market and the continuation of speculations. Its average price ended the week at USD 493/mt ex-work including VAT compared to average of USD 498/mt a week ago.

 

Long Products

Rebar price was downward from USD 576/mt to USD 574/mt. Two factors affecting this trend more were very weak demand and downward trend in billet market which market participants believe it will continue.

I-beam market was downward due to market concerns from USD 657/mt to USD 654/mt ex-work including VAT. Price return or market improvement requires conditions that may not be provided in the coming weeks.

 

Flat Products

Mobarakeh steel co HRC 2 mm thickness was USD 747/mt on Saturday, which reached USD 761 /mt ex-work by Wednesday.

Oxin co HRP dropped from USD 877/mt to USD 871/mt by end of the week. It seems that price is near the bottom.

CRC market had a limited fluctuation due to lack of demand and market depression. It was around USD 1041/mt during the week and changed to USD 1045/mt by Wednesday.

HDG had a quiet market with no significant change at USD 1044-1049/mt. Recession is the main cause of price stability.

 

Weekly Analysis:

It seems that by beginning of next year, Chinese market will improve with the removal of Covid restrictions and the government's plan for property market. But global economic conditions do not show signs of improvement. Establishing a bottom price ceiling for Russian oil and gas will cause fluctuations in the oil market because consumers will try to buy their oil close to this price from the world markets. Of course, if OPEC+ does not decide to reduce production, the oil market will go down. Therefore, all these factors had made steel demand cautious. Winter seasonal weakness, along with the recession, reduces steel demand and brings the prices close to their bottom.

There is no demand for steel in Iran, and on the other hand, the psychological atmosphere of the market is negative and worried about social and transportation issues. All these factors have caused the stock market to remain without buyers. The stock market continues to work knowing that its prices are about eight to ten percent higher than the market and has no plans to change the pricing system.

DRI supply level at the moment is not consistent with billet and rebar at IME. Recently, DRI supply has been very limited and will probably continue due to gas shortages in winter. In contrast to supply of 70,000 tons of DRI, 200,000 tons of billet and 300,000 tons of rebar are being offered. The question is, is there a balance among these supplies?

 

CBI weekly average ex-rate for Steel Products (SANA): Rials 281,202/ 1USD

05 Dec 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

Dec 5, 2022 11:26
Number of visit : 733

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