Billet had a
downward trend during last week in Iran domestic market from USD 643/mt to USD 632/mt
ex-work including VAT. The main reason was downward ex-rate, while global
prices have increased. The average selling price of billet in the market
reached USD 593 /mt, which experienced an increase of USD 36 /mt compared to
the previous week, even though it was offered only in cash. Considering the
lack of DRI supply, billet supply level will probably decrease. Currently, billet
price trend is more dependent on ex-rate and its export rate, rather than
rebar market was quiet due to currency market
fluctuations, but it returned at the weekend and finished it at average of USD 725/mt
ex-work including VAT. There is no reason to reduce price of rebar except real
demand, which has not changed this year. Billet price has increased and DRI
market is facing with limited supply. Besdies, market is waiting for higher energy
prices by end of February like every year this time which has affected prices
I-beam market was upward from USD 865/mt
to USD 895/mt but by end of the week currency market made it down again to USD 870/mt.
The price of 2 mm thickness HRC ex-work
Mobarakeh was USD 1095 /mt on last Sunday, which reached USD 1038 /mt by
Wednesday. The currency factor caused a decrease in prices. Worried sellers made prices more down, but the
market calmed down over the weekend. Upward global prices will affect this rate
Oxin co supply level
is still affecting HRP market. Bad weather condition declined supply level but
global market prices didn’t let prices decline, besides slab upward price will
affect HRP market directly. Oxin co HRP average price remained at USD 1044/mt
ex-wotk including VAT after some fluctuauations.
CRC market was faced
with a severe supply limitation. The gap betwean ex-work and market price is significant which has made
official market players absent. It was USD 1513/mt by last Monday and finished
the week at USD 1495/mt.
HDG market had some
fluctuation but finally had a slight change from USD 1442/mt to USD 1441/mt by
end of the week. Like other products ex-rate changes affected this market too.
Global market has not yet
caught up with China's real consumption. After Chinese demand increase after
Lunar Near Year Holidays in first quarter of 2023 prices would be upward till
reaching new highs in China. Due to cold weather, scrap supply is facing with a
seasonal shortage, which has made its price up.
In the domestic market, DRI
supply is still limited. Upward global billet price will not allow its domestic
price decrease, while its limited supply at IME will raise its price. Therefore
lower billet or long produts prices for at least the next two weeks seems
unlikely. Flat products market also will be faced with silimar trend while
Mobarakeh Steel co has asked for a new pricing formula, which its acceptance by
authorities will mean a sharp increase in its prices.
In any case, the coming
months include many fluctuations that cannot be predicted. But according to China
market opening, price reductions seems limited.
CBI weekly average ex-rate for Steel
Products (SANA): Rials 285,000/ 1USD
30 Jan 2023
Iran Steel News Bulletin