With higher DRI price, billet was also upward by USD 2/mt to USD 542/mt
but with the cancellation of DRI transactions, returned to USD 540/mt ex-work including VAT by end of the week.
Lower demand made rebar price down from
USD 629/mt to USD 625/mt by end of the week.
I-beam was also downward for the same
reason by USD 7/mt to USD 680 /mt.
HRC market is
waiting for a price reduction, but suppliers are resisting. This resistance
cannot be sustained due to the drop in global prices and weak domestic demand.
HRC 2 mm thickness ex-work Mobarakeh was down by USD 3 /mt to USD 983 /mt ex-work
including VAT by Wednesday.
Oxin co HRP was down from USD 867/mt to USD 861/mt due to lack of
In CRC market, finally, resistance broke
and prices started a downward trend. It average price was down by USD 3/mt to
USD 1135/mt ex-work including VAT.
Downard HRC market spreads to HDG market too
as was down from USD 1153/mt to USD 1152/mt. Besides, its price
has reached the bottom.
In the world
Global markets are still relatively stable,
iron ore has increased slightly, scrap and billet have also increased compared
to the previous week, but this does not mean an improvement in demand. For now,
the world market is waiting for the Gaza war to end. Even seasonal demand of the year end cannot show the real market
in the current conditions. But after end of the war, reconstructions will change markets.
In the domestic market:
The war in Gaza has caused politics to be much
more colorful than economics, there is no more news about BRICS, but politics
is not idle either, the visit of the Afghan delegation to Esfahan Steel co
means the opening of exports to this country, which has a great demand for
beams and rebars.
In any case, this year is the year of politics
and the elections are coming, and the fight against inflation is the
government's work model, the war in Gaza makes this policy more colorful. Any significant change in coming months seems unlikley.
Our steel market is experiencing conditions
that have not been seen in the past ten years. The question is why price
of finished products are falling every day? Shall we blame IME for it or it is due to lack of
demand along with price management by IME causing this condition?
CBI average ex-rate for Steel Products (SANA): Rials 373,376 / 1USD
13 Nov 2023
Iran Steel News