Billet: Billet price increased due to controlled supply. The discussion of power outages became the driver of the price surge over the weekend.
Long Products
Rebar: The reduction in supply on the IME ( Iran Mercantile Exchange) stabilized rebar price.
I-beam: I-beam price increased with the supply management of Esfahan Steel co.
Flat Products
HRC: Decreased demand due to the closure of consuming units caused HRC price to decline.
HRP: Limited supply slightly increased HRP price.
CRC: Decreased demand reduced CRC price.
HDG: Lower HRC price led to a decrease in the price of HDG. Additionally, demand remains weak.
Weekly Analysis:
In the world market: Oil price continues to hover around USD60. Global steel market is still awaiting the impact of Trump's tariffs and the US-China meeting in Geneva. With the market's calm, no change in prices is expected because there is no possibility of reducing steel prices in terms of cost. The price fluctuation range can be a maximum of USD 20/ per ton. Price improvement is expected depending on changes in demand, which might be hoped for next year.
In the domestic market: Domestic market demand is very weak. Despite two months of the year having passed, there is no prospect of improvement because the development budget has reached near zero. On the other hand, the market is facing a liquidity problem. Supply outlook is downward as electricity problem has started. and this itself can be a driver of demand, especially since inventories are low.
The decrease in production will ultimately lead to a drop in government revenue from taxes and duties and will increase the budget deficit. This will eventually lead to an increase in the exchange rate. The electricity imbalance affects the entire economic system. The summary of this process is a price increase, which is partly due to rising production costs and partly due to supply constraints. A hot summer is ahead.
CBI average ex-rate for Steel Products (SANA): Rials 690,309/ 1USD
19 May 2025
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM