Currency price increases have been the main driver of rising prices for steel products like billet, rebar, and I-beam, despite some market stagnation. Limited supply, whether due to production issues or export demands, has also contributed to these price hikes.
Billet:Rising currency values led to increased demand and higher prices.
Long Products
Rebar: Higher currency prices and limited supply from some mills caused prices to rise.
I-beam: Price increases were driven by managed supply and improving currency prices.
Flat Products
HRC: Despite the stagnation in the market, the price of hot-rolled sheet increased due to a rise in the currency exchange rate.
HRP: After weeks of stagnation, a combination of limited supply and a rising currency exchange rate finally made Oxin co HRP change.
CRC: This product saw price increases due to the higher currency value and exports to Iraq.
HDG: HDG was unaffected by the currency-driven price increases. This is because its demand is extremely low, and its supply cannot be reduced, keeping its price stable.
Weekly Analysis:
In the world market: Global steel prices have remained largely unchanged. Iron ore is at $101, scrap at $346 (CFR Turkey), billet is around $430 (FOB Black Sea), and slab is at $415. HRC was the only exception, rising from $448 to $460 fob black sea.
The market is facing uncertainty due to the influx of Chinese goods and confusion over tariffs. The report suggests that no significant changes are expected in the short term, as the global market is dominated by political factors. It will take time for the new global structure to become clear, barring any major international disasters.
In the domestic market:
power and water shortages continue to hinder production. Even if power issues are resolved, water scarcity may prevent mills from returning to full capacity. Following that, gas shortages are expected to be more severe this year due to increased consumption.
The "command economy" approach is pushing production to its lowest levels. While a lack of demand is helping to curb inflation, a halt on bank lending is also a contributing factor.
Prices will continue to rise due to decreased production and higher costs. The increasing currency exchange rate will only intensify this trend. The managing directors of major steel companies like Mobarakeh and Khuzestan have complained about a 40-fold increase in water prices, in addition to higher electricity costs. A command economy can't sustain this imbalance forever, and once it breaks, prices will "explode."
CBI average ex-rate for Steel Products (SANA): Rials 692,722/ 1USD
11 Aug 2025
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM