[Your shopping cart is empty

News

Iran Steel Market Trend in Week 52nd , 2022

Iran Steel Market Trend in Week 52nd , 2022

Billet

Billet price was upward during last week in Iran domestic market from USD 610/mt to USD 632/mt ex-work including VAT, mainly due to supply shortage in DRI segment and also higher ex-rate.

 

Long Products

Higher billet price, upward currency rate and inflationary expectations were the main reasons behind upward rebar price last week from USD 675/mt to USD 691/mt ex-work including VAT by end of the week.

I-beam was also upward due to higher ex-rate and supply control from USD 815/mt to USD 829/mt by end of the week.

 

Flat Products

Mobarakeh steel co HRC 2 mm thickness was USD 923/mt on Saturday, which reached USD 982 /mt ex-work by Wednesday. Limited supply level, higher ex-rate, lack of slab supply at IME all made HRC market upward.

Oxin Co HRP was also up from USD 899/mt to USD 970/mt due to sme reasons.

HDG was also upward as followed HRC market and upward ex-rate from USD 1171/mt to USD 1193/mt by end of the week.

 

Weekly Analysis:

Closure of foreign markets for New Year Holiday has limited demand level. Besides, the uncertain situation of covid related restrictions in China has caused the markets to be cautious about the estimation of demand in China. Christmass and New Year holiday has reduced steel demand to a minimum for now, but from next week, when the markets open, China's demand will begin to fill the warehouses before the Chinese New Year holiday, so the price trend will continue to rise.

in domestic market, three issues can be concerned:

 First, supply side issues: as DRI supply has decreased, billet supply has also taken a downward trend. Many mills, especially induction furnace based, have kept the market from their inventory not new production, but in the coming weeks, their stocks will also be emptied, and only the big suppliers which are faced with 40% production cut will remain in the market. This has caused the market's sentiment to be positive towards price of finished product, and traders have turned to the policy of maintaining inventory instead of maintaining liquidity.

The second issue is exchange rate fluctuations and budget deficit is the main reason for the increase in the exchange rate. Traditionally in last months of the year, the government tries hard to cover this deficit, and how successful it is depends on many factors.

The third issue is the interest rate, which has practically increased without an official announcement. This will put additional pressure on producers.

The upcoming conditions for the steel market indicate more stagnation and inflation, assuming a decrease in currency rate, steel price will not decrease seriously, because the main problem of steel is from the supply of raw materials, not from the exchange rate.

 

CBI weekly average ex-rate for Steel Products (SANA): Rials 285,008/ 1USD

02 Jan 2023

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

Jan 2, 2023 13:20
Number of visit : 363

Comments

Sender name is required
Email is required
Characters left: 500
Comment is required