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