Limited supply level made billet price in Iran
domestic market upward from USD 577/mt to USD 589/mt ex-work including VAT.
Rebar price remained stable, and only on
Wednesday had some improvement due to sales with LC payment and higher billet
price. It was around USD 661-662/mt ex-work including VAT.
I-beam price was almost unchanged and only a
limited change was seen in the middle of the week, which was affected by ex-
rate fluctuation. Its price changed from USD 710.5/mt to
HRC 2 mm thickness was USD 873 /mt ex-work Mobarakeh on Saturday, which reached USD 911/mt by
Wednesday. HRC price had reached bottom level in the
previous week, and the price increase this week was just a correction.
HRP price remained almost unchanged due to
weak demand at around USD 835/mt ex-work including VAT.
With better activity in consumer markets, CRC
demand has increased and its price went up from USD 1119/mt
to USD 1139/mt by end of the week.
HDG market followed HRC upward trend and its
price improved from USD 1083/mt to USD 1100/mt ex-work including VAT.
In the world market:
Oil price is still standing at the border of USD
80/barrel. Global scrap and billet price trend is still slow but
upward. A billet cargo was
sold last week at a price higher than USD470/mt fob Iranian ports. This shows that market
is not expecting downward trend in prices, but demand is not strong. In Far East import
billet is offered at USD 500-520/mt CFR from Indonesia or China. It is expected that
this process will continue slowly. Concerns about China's
economic conditions and its government's slow response to the recession still remain,
which has directly affected steel market trend.
In the domestic market:
In the next few weeks, several religious
holidays will cause markets to be inactive in Iran domestic market, so the
economy will be practically in recession. Power cuts at mills has reduced DRI demand so
much that part of offers at IME was not sold. But this problem will be solved gradually
Flat products market is facing with a serious
lack of demand, to the extent that, except for Mobarakeh Steel co, other
producers got permission to sell their product to traders, but still there was
no buying interest.
The main issue that has occupied minds of
economic activists these days is the export of oil and gas condensate, which
has exceeded the limit of three million barrels. The first question is how much of the foreign exchange from export
of these goods has returned or will be? The second question is the effect of entry of these moneys and
the freed money from Korea and other countries on our economy and whether this
money will be spent in production and construction sections or not. In this case,
assuming the stability of exchange rate,
will inflation occur as a result of demand or not?
CBI average ex-rate for Steel Products
(SANA): Rials 371,989 / 1USD
28 Aug 2023
Iran Steel News Bulletin