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Iran Steel Market Trend in Week 47th , 2024

Iran Steel Market Trend in Week 47th     ,  2024

Billet: Billet price fell slightly, due to the sharp increases in previous weeks and availability of delayed payment cargoes in the market at cash price.

 بیلت

Rebar: Lower demand weakened rebar market. There were no buying interest while supply level was high.

 میلگرد

I-beam: Controlling the market by its leader did not allow I-beam price to change while demand was weak.

 تیر

Flat Products

HRC: The stagnant HRC market had no demand, but its price had reached the bottom, and there was no possibility of further decline.

 ورق سیاه

HRP: HRP price has reached its bottom, the increase in slab price caused HRP price to rise over the weekend, while its supply is also disrupted.

 اکسین

 CRC: CRC price has bottomed, so its volatility is very limited.

 ورق سرد

HDG: The stability of HRC price and market recession led to HDG price stability.

گالوانیزه

 

 

Weekly Analysis:

In the world market:  Everything is calm in the global market, like in previous weeks, oil market trend is stable, iron ore has not changed significantly and remains at around $100, but scrap has dropped by about $20 and billet by about $10. Concerns about China's economic situation have darkened the outlook for market recovery, and this trend is likely to continue until the end of December. News indicates that the price of ingots in the Far East has fallen due to Chinese offers.

 

In the domestic market: IME ( Iran Mercantile Exchange) stopped billet trading for traders, while its price had reached the peak and could not increase further. Meanwhile, previous supplies had increased the gap between billet price in the cash market and the stock exchange. In fact, this policy prevented more recession and fall of billet price and gave producers an opportunity to export. At the same time, the domestic market will avoid further decline, but the rebar market will be affected. This policy will not allow rebar prices to fall, while neither the mills have the power to purchase billet nor the market has the power to absorb the high prices of rebar on the stock exchange, so the market will go into a coma for a while to adapt itself to the new condition.

Last week there was news of an increase of more than 60% in electricity and gas prices, while both are in the process of being cut off, on the other hand, the European resolution was issued and the market is waiting for the exchange rate to change. Another news is the launch of the currency exchange market in January, which indicates the possibility of changing and increasing the exchange rate.

The sum of all these factors indicates a change in rates. But it takes time and the increase in prices will cause a recession. If the exchange rate does not increase, export market will be grounded. Next year's budget, given its deficit and its sources of supply, will lead to increased inflation if it does not have sufficient exports.

The steel market is far from last year's prices. Most mills are facing inventory and price problems, so increasing prices is the only way left for the finished product sector to fight the increase in raw material prices and costs.

 The question is, does the market have ability to absorb higher prices?? And to what extent?

 

CBI average ex-rate for Steel Products (SANA): Rials 511,763/ 1USD
25 Nov 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM

 

 

Nov 25, 2024 14:16
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