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Iran Steel Market Trend in Week 37th , 2023

Iran Steel Market Trend in Week 37th  , 2023

Billet market was stable during last week in Iran domestic market and even higher ex-rate couldn’t compensate for the problem of weak demand and lack of liquidity in the market. Its average price was around USD 587 /mt ex-work including VAT during the week.


Long Products

Rebar price is dealing with lack of demand in Iran domestic market, therefore, price remained almost unchanged at around USD 666-668/mt ex-work including VAT during the week.

I-beam had a downward trend from USD 712/mt to USD 704/mt which lack of demand is the main factor.


Flat Products

HRC 2 mm thickness was USD 926 /mt ex-work Mobarakeh on Saturday, which reached USD 956/mt by Wednesday. Thanks to the exchange rate change and some traders holding back from offering, the market went up.

Like Mobarakeh steel co HRC, Oxin co HRP also improved from USD 848/mt to USD 857/mt ex-work including VAT.

CRC market price trend is slowly became clear as its demand is improving. Its average price changed from USD 1139/mt to USD 1149/mt ex-work including VAT.

With HRC upward trend HDG market was also up from USD 1126/mt to USD 1135/mt ex-work including VAT during lat week.


Weekly Analysis:

In the world market:

Oil price is rising and will probably go up to USD 100 /barrel. This is due to restocking of China and USA and the flood in Libya, but cold weather in coming months will be another reason behind upward trend. Billet and scrap price has started to rise slowly, with these conditions and maintaining the reduction of the OPEC+ production ceiling, there is no possibility of prices going down, this will help Iran's export level. The increase in export is especially noticeable in October and September. Part of China's rising oil demand is due to the export of petrochemicals from China, not actually due to China's own consumption alone. However, this trend does not seem to change anytime soon.


In the domestic market:

Domestic market is facing with lack of demand and liquidity problem. Since last week, billet producers have returned to their production capacity, that's why expectation of price reduction is quite noticeable. On Wednesday, the new guidelines for billet and pellet at IME (Iran Mercantile Exchange) limited the competition of traders in the billet and pellet buying ring, so prices are expected to decrease, especially for long products. The first effect is that demand will fall back and wait for the market to stabilize, which will cause the prices to decrease.

In a situation where the market is very weak and next holidays coming, the drop in rebar sales that we have seen in the stock market for the past three weeks will intensify. Mills that do not sell their billet and rebar at IME, offer them in cash market, but state mills cannot supply outside the stock market, as a result, they will have liquidity problems which they are facing now. Of course, the price reduction in the domestic market is beneficial for these factories because it increases their export capacity.

In coming Iranian month ( begin from next week), we will see a drop in the price of billet and long products, an increase in export and possibly an injection of money. While the due date of many previous debts of mills and traders is in this month.


CBI average ex-rate for Steel Products (SANA): Rials 371,399 / 1USD

18 Sep  2023


Iran Steel News Bulletin





Sep 18, 2023 14:34
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