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Iran Steel Market Trend in Week 50th , 2022

Iran Steel Market Trend in Week 50th , 2022


Billet price had an upward trend during last week in Iran domestic market from USD 510/mt to USD 532/mt ex-work including VAT, which was caused by limited supply level and higher ex-rate.


Long Products

Higher billet price made rebar average price upward too from USD 577/mt to USD 606/mt.

Esfahan Steel co market management and higher ex-rate made I-beam also upward from USD 672/mt to USD 714/mt ex-work including VAT.


Flat Products

Mobarakeh steel co HRC 2 mm thickness was USD 759/mt on Saturday, which reached USD 815 /mt ex-work by Wednesday. Market acceptance to purchase Moborakeh Steel co products, higher ex-rate and upward global prices made market upward.

Oxin co HRP had a downward trend from USD 863/mt to USD 858/mt due to market competition and higher supply level. For Kavian co HRP, due to higher slab price and rise in currency rate, the mill increased its prices.

In CRC market, higher global prices and upward ex-rate, made market confused, while supply was also limited. On Wednesday, when the prices were almost stabilized, it was significantly different from last week.

With the increase in HRC price, HDG price also reacted and went up from USD 1035/mt to USD 1084/mt ex-work including VAT.



Weekly Analysis:

With higher activity in China market, mentality of the market has become positive, and this has increased the demand. Prices are rising since two weeks ago, and for this reason, this trend will continue until the Chinese New Year holiday, while oil price is in the range of USD 80 /barrel and this will help better investment in construction projects in global markets. This trend will probably continue in the first quarter of the new year and the markets will remain active.

In domestic market, three main influencing factors have put pressure on the steel market. The first issue that is very serious is supply level. Due to cold weather and gas shortage, DRI supply level has decreased drastically, as a result, most mills producing billet by induction furnace are facing a reduction in production. This will cause billet supply to decrease by nearly 50% in the next month, at the same time when the export market is booming and the government is trying to encourage export due to the need for foreign currency on the one hand and the lack of demand in the domestic market on the other hand. The gas problem will probably continue for the next two months. Usually, DRI mills use this opportunity for production lines maintenance, as a result, after solving the gas problem, production volume will not reach the optimal ratio quickly.

 The second issue that has affected the market is exchange rate which is rising.  

The third problem is wandering capitals. Over the past nine months, due to the stagnation in the steel market, capitals have shifted from the steel sector to other sectors such as auto, property and currency market.

Upward steel prices are very attractive for large capital amounts that expect quick returns. The entry of these capitals into the steel sector will stimulate prices, while its supply will be more limited, and this is an encouragement for these capitals, while Steel consumption decreases due to cold weather and lack of construction budget.

The result of all the above factors is that steel price in the next one or two months would be upward from point of view of many market insiders.


CBI weekly average ex-rate for Steel Products (SANA): Rials 288,451/ 1USD

19 Dec 2022


Iran Steel News Bulletin




Dec 19, 2022 13:28
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