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Iran Steel Market Trend in Week 03rd , 2023

Iran Steel Market Trend in Week 03rd  , 2023

 

Billet

Billet price fluctuated during last week in Iran domestic market. Hopes about higher supply at IME pressured prices, but then supply limitation and higher ex-rate kept prices. It seems that according to upward global rates, market upward trend would be durable. Its average price changed from USD 620 mt to USD 622 /me ex-work including VAT.

 

Long Products

Rebar price was downward from USD 708/mt to USD 700/mt during last week in Iran domestic market. The reason was that markets were closed the previous week and when opened, cheap rebar was available in the market. But lower supply and the problem of billet supply kept the market. I-beam price stayed due to Esfahan Steel co market control.

 

Flat Products

HRC 2 mm thickness changed from USD 1000/mt to USD 1046/mt by end of the week. Limited supply of Mubarakeh Steel co raised market prices, while many traders were absent which reduced supply volume more.

Oxin co supply level was severely constrained, but more important is the increase in global slab price, which has had a strong impact on IME. This caused prices to increase from USD 985/mt to USD 1013/mt ex-work including VAT by end of the week.

CRC supply level has decreased and the exchange rate fluctuation has also caused the market of this product to be messed up. Its price changed from USD 1364/mt to USD 1406/mt.

Higher HRC price made HDG also upward, although zinc price increase had an effect on its price too. It was up from USD 1303/mt to USD 1380/mt ex-work including VAT by end of the week.

 

Weekly Analysis:

In the global market, China was in a holiday mood and its impact will not be known for two weeks, but the price trend will probably be upward.

In the domestic market, the price trend was stable last week. There are two opposite possibilities for the coming weeks:

The first possibility looks at the price reduction because it expects billet price to decrease with the increase in DRI supply level. On the other hand, demand will be decreasing as it is year end market sentiment.

The second possibility believes that today's price of billet has been calculated with DRI price of less than USD 351/mt , but higher gas price in government budget will increase the base price of DRI, so its price will not decrease seriously. On the other hand, global billet market sentiment is upward, if the price falls in the domestic market, export market will compensates it.

Regardless of which possibility is true, the determining factor is still exchange rate.

 

CBI weekly average ex-rate for Steel Products (SANA): Rials 285,000/ 1USD

23 Jan 2023

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

Jan 23, 2023 11:13
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