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Iran Steel Market Trend in Week 51st, 2022

Iran Steel Market Trend in Week 51st, 2022

Billet

Billet price had an upward trend during last week in Iran domestic market from USD 544/mt to USD 567/mt ex-work including VAT, mainly due to supply shortage.

 

Long Products

Limited supply of billet caused competition for purchasing rebar and increased its price from USD 603/mt to USD 637/mt by end of the week.

Inflationary expectations along with market management by Esfahan Steel co brought I-beam price to its peak from USD 733/mt  to USD 788/mt ex-work including VAT.

 

Flat Products

Mobarakeh steel co HRC 2 mm thickness was USD 829/mt on Saturday, which reached USD 853 /mt ex-work by Wednesday. Sellers satyed back and avoid dealing which made market more upward.

Unlike other steel products, Oxin Co HRP was almost stable at USD 844-855 /mt during the week.

CRC was up by USD 13/mt to USD 1096/mt due to limited supply.

HDG was also upward as followed HRC market trend from USD 1090/mt to USD 1121/mt by end of the week.

 

Weekly Analysis:

In the global market currently better market sentiment in China, nearing Christmas holidays and the seasonal boom, made markets upward, and may continue at the beginning of next year, unless Covid-19 restrictions in China increase again. Otherwise, the same inflation that we saw in Europe and USA will happen in China.

Domestic market is facing with two issues, firstly, supply problem and secondly, the inflationary demand caused by the possibility of more increases in exchange rate.

There are two views in the market. First one says that warehouses are full with the average rebar price of USD 597-614/mt, so there is no room for price increases until the next month, and after the gas problem is solved, prices will stabilize or decrease. The second point of view believes that gas shortage has spread to power supply too and the Ministry of Energy has warned many mills to reduce their electricity consumption by up to 30%, as a result of which the supply gap of raw materials and semi-finished steel products will last until February. During this period, warehouses will be emptied. When mills restart production, supply level won’t satisfy market demand. Regardless of above, exchange rate and budget deficit at end of the year also has worried many economic activists.

 

CBI weekly average ex-rate for Steel Products (SANA): Rials 293,065/ 1USD

26 Dec 2022

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

Dec 26, 2022 13:32
Number of visit : 434

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