Billet:. Supply constraints have led to a price increase for billet in domestic market.
Long Products
Rebar: A drop in supply helped to maintain rebar price.
I-beam: Despite weak demand, controlled supply has supported the market for steel beams.
Flat Products
HRC: Lack of demand made HRC price downward.
HRP: Reduced demand and lower slab prices, combined with competition from other factories, have increased the supply of Oxin co HRP while also lowering its price.
CRC: CRC deman has hit a low, but prices are unlikely to decrease further.
HDG: Like CRC, HDG price has also bottomed, but there is no demand for it.
Weekly Analysis:
In the world market: There have been no significant changes in the global market. The influx of Chinese goods is causing concern even among UAE importers. Chinese companies are skilled at both policy-making and execution, outperforming other countries in implementation, even if they have superior technology. In a stagnant and uncertain market, marketing power becomes a crucial advantage.
The current Summer holiday period is not yet over, and demand might improve afterward in global markets. For now, a price decrease is not expected as prices have already reached their lowest point. The start of new US tariffs will disrupt markets, making it difficult to analyze market trends for at least three months.
In the domestic market: From a supply perspective, a lack of electricity and water has brought production to a minimum. The government first cut off "green electricity" from industries and then the electricity from their power plants. This situation means production will remain at its lowest for at least the next month.
The demand side is also facing similar issues. Reduced housing construction and lower housing prices have stalled the steel market. Power outages have also decreased the production of household and industrial goods. As a result, the drop in billet and slab supply isn't very noticeable and won't have a significant impact on prices, only causing a slight increase.
When economic stagnation persists, it causes capital to flee to more active markets like Oman. Uncertainty and talk of war drive small investors toward gold and currency. This results in decreased investment and employment, a larger budget deficit, rising inflation, and an increasing exchange rate that bears the brunt of these problems—unless policy intervenes.
CBI average ex-rate for Steel Products (SANA): Rials 691,470/ 1USD
04 Aug 2025
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM