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Iran Steel Market Trend in Week 41st , 2024

Iran Steel Market Trend in Week 41st ,  2024

 

 

Billet:  Billet price rose during last week in Iran domestic market due to high demand of re-rollers.

بیلت

Long Products

Rebar: Rebar price changed along with fluctuations of the currency, while its demand was very weak.

میلگرد

I-beam: The change in ex-rate caused I-beam price to change, but its price started to decline from middle of the week.

تیر

Flat Products

HRC: Like other items, the change in ex-rate was a driver for HRC price fuctuations.

ورق سیاه

HRP:  Expecting improvement in currency rate raised Oxin co HRP price, but its price returned at the end of the week.

اکسین

CRC: CRC market also increased following the fluctuation of currency market, but after ex-rate fell, it started a downward trend.

ورق سرد

HDG:  HDG supply and demand did not change seriously, but its price also fluctuated due to the change in exchange rate.

گالوانیزه

Weekly Analysis:

In the world market:  There is no significant change in global markets, oil price is still below USD 80/barrel, scrap fluctuates at USD 380/mt CFR Turkey and billet is around USD460/mt. HRC also showed an improvement of about USD 5-10/mt.

 

In the domestic market: The shadow of Gaza war on Iran's economy is quite noticeable. On the one hand, the government is trying to control inflation and on the other hand, crisis management. In terms of inflation, it manages the demand through control of the banks' balance sheets, which causes the demand for steel to decrease. During the last two months, this trend has caused production of long products to reach its minimum, that's why most of the mills producing rebar, UNP and channel do not have  matched materials available. This is evident even in the case of mills that produce billet and turn it into rebar themselves, that's why the volume of buying billet increased sharply last week. Fluctuations in currency prices also contributed to this and the competition of the commercial sector made the volume of billet purchased in the stock market to exceed 180 thousand tons for the previous week.

But in the case of rebar, demand is very weak, as supply of rebar last week decreased to about 60% of the previous week and reached 116,000 tons. While only 24 thousand tons of the total supply were traded. With the continuation of this trend, the base price of rebar will rise following the increase in the price of billet in the stock market, but due to the drop in demand in the market, its demand in the stock market will continue to decline.

It is not expected to see a serious change in the flat products market, many profile producers prefer to use belts produced in the domestic market instead of sheets. This will affect the demand for sheets with a thickness of less than 5 mm, while the market of slab in the world is declining. Naturally, it seems unlikely that the price of HRC will increase. Recently, Turkey has increased the import duty on the import of HRC from China, India, Japan and Russia from 6% to 43%. Perhaps this is an opportunity for Iranian mills that are facing an oversupply to be able to compensate part of the restriction on the import of these countries. In general, the market should wait for the clarification of the war in Gaza and Lebanon.

 

CBI average ex-rate for Steel Products (SANA): Rials 476,151/ 1USD
14 Oct 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM

 

 

 

Oct 14, 2024 14:30
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