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Iran Steel Market Trend in Week 17th , 2023

Iran Steel Market Trend in Week 17th  , 2023

Billet

Higher DRI price made billet price upward during last week in Iran domestic market from USD 606/mt to USD 628 /mt ex-work including VAT.

 

Long Products

Higher billet price led to an increase in the price of rebar from USD 711/mt to USD 727/mt, while its demand was weak.

I-beam price changed from USD 890/mt to USD 877/mt. By end of the week billet upward trend made i-beam market sentiment also upward.

 

Flat Products

HRC 2 mm thickness changed from USD 926/mt ex-work Mobarkeh to USD 934/mt by last Wednesday. Lack of demand affected HRC market sentiment.

Limited supply made oxin co HRP price improve from USD 844/mt to USD 911/mt ex-work including VAT.

Stable demand made CRC market almost stable at around USD1390/mt.

Limited improvement in ex-rate made HDG price rise from USD 1350/mt to USD 1372/mt ex-work including VAT.

 

Weekly Analysis:

In the world market:

Prices in the world market are declining. Iran and Russia, both of which under sanctions, are competing for selling their billet and slab. Besides, both countries need to export, therefor, the competition would continue. At the other hand, downward scrap price does not support billet market sentiment.

 

In the domestic market:

In Iran domestic market, the government is trying to calm the market in order to keep average inflation rate balanced and to provide opportunities for export. With lower global prices, mills would turn to domestic market, which may make market downward in the coming days. In fact, global prices have supported Iranian policymakers to continue to move against the market. Maybe they can adjust price of billet and DRI  despite higher costs. If the power cuts starts from end of May, all government plans for controlling prices would be affected.

 Economists all forecast around 50% inflation rate, which is not a good news for steel market because with the increase in inflation along with the recession, demand would decrease and on the other hand, the profit-to-capital ratio would fall. Market participants will definitely think about investing in other sectors beside their professional steel trade. The question is, can export continue with the expected inflation in this situation? And where will the exchange rate stop?

 

CBI average ex-rate for Steel Products (SANA): Rials 378,075/ 1USD

 

01 May 2023

M.Chitsaz

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

May 1, 2023 16:19
Number of visit : 689

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