Higher DRI price made billet price upward
during last week in Iran domestic market from USD 606/mt to USD 628 /mt ex-work
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.
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
Limited improvement in ex-rate made HDG price
rise from USD 1350/mt to USD 1372/mt ex-work including VAT.
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
Iran Steel News Bulletin