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Iran Steel Market Trend in Week 08th , 2023

Iran Steel Market Trend in Week 08th  , 2023


Billet price was upward during last week in Iran domestic market from USD 743/mt to USD 834/mt ex-work including VAT. Cancellation of transactions at IME ( Iran Mercantile Exchange) in the previous week, upward exchange rate and hidden steel market demand were all the reasons behind upward trend.


Long Products

Like billet market, cancellation of transactions at IME and higher currency rate increased rebar price from USD 939/mt to USD 980/mt ex-work.

High demand due to market management by Esfahan Steel co along with upward exchange rate caused I-beam price to rise from USD 1161/mt to USD 1269/mt.


Flat Products

Price of 2 mm thickness HRC ex-work Mobarakeh was USD 1351 /mt on last Sunday, which reached USD 1393 /mt by Wednesday. Limited demand and ex-rate rise fueled market inflationary expectations.

Limited supply level of Oxin co HRP besides currency market issues made HRP up from USD 1163/mt to USD 1244/mt.

Limited supply coupled with talks of a overhaul next year at Mobarakeh Steel co production line were the main reasons for upward trend in CRC market as changed from USD 1941/mt to USD 2064/mt ex-work including VAT.

Higher HRC price and upward ex-rate which affected Zinc price, made HDG upward from USD 1951/mt to USD 2104/mt.


Weekly Analysis:

Global market outlook and China market future sentiment is positive. The earthquake in Turkey has made scrap price upward which may reach USD 500 /mt CFR Turkey. With spring and better weather condition coming, construction projects will be activated and increase steel demand level globally.

In domestic market; the sitiation have different aspects:

On the one hand, export demand has to be considered. In the export ring billet was sold at up to Rials 230,000 /KG base price, and its fob price is not below USD 540 /mt FOB Iranian ports. Regarding rebar, there have been talks about rebar price of USD 600 /mt ex-work mills in Azerbaijan Province, so the price trend and export level are both upward which will reduce the volume of domestic supply and rise prices more. On the other hand, DRI supply shortage is seen in the entire steel production chain in Iran. Its supply is still limited and deliveries are delayed. Therefore, any improvement in billet supply level until end of April should not be expected.

Meanwhile, re- rollers are struggling with the problem of billet shortage. In order to balance the market, the government has practically adopted policy of limiting demand and hopes that by the end of April, with higher DRI supply, production level will increase and prices will decline. This policy has caused demand pressure on the current warehouse inventories and made prices up. Finally, the market would realize that it should rely on its own forces. The biggest problem of the government is that it does not refer to the market and producers to ask them to give a solution, even like other countries, it does not look for tools such as heavy taxes in exchange for increasing the price above the desired price, but it targets the production, and this causes More imbalance in the market.

Apart from all this, currency market is the issue. On Thursday, free market was expecting a decrease in the exchange rate, but the opposite happened. This is the main issue, if the ex-rate continues to increase, as there are export demand for semi- finished and final steel  products, it will simply neutralize improvement in DRI supply. In any case, currency market fluctuation is the main player at the moment in Iran Steel market.


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

27 Feb 2023


Iran Steel News Bulletin



Feb 27, 2023 15:15
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