Billet: Due to the recession in the steel sections market and the decline in the exchange rate, billet price followed a downward trend.
Long Products
Rebar: Lower ex-rate created expectations of lower rebar prices in the market.
I-beam: Talks of a potential agreement and the decline in the exchange rate were the main factors behind the decrease in I-beam prices.
Flat Products
HRC: The decline in the exchange rate, the announcement of Mobarakeh Steel's offerings, and the availability of imported products led to a price decrease in HRC market.
HRP: The decline in the exchange rate and the availability of imported products caused Oxin steel plate prices to fall.
CRC: The availability of imported products and the decline in the exchange rate were the two main factors behind the decrease in CRC prices.
HDG: The decline in HRC price and lower ex-rate led to a decrease in HDG prices.
Weekly Analysis:
In the world market: The global market remains relatively stable; however, weak end-user demand and falling product prices in China have contributed to a downward price trend. Although Chinese producers have reduced their output, demand remains weak. At the same time, billet and steel section prices have increased due to rising production costs.
Because of declining domestic demand, Chinese producers focused on exporting their products during the past week. Their main export markets were Indonesia and Thailand, and this trend is expected to continue.
In Europe, the market remains sluggish due to a decline in construction activity compared with the previous year. Nevertheless, construction activity over the past month showed a modest increase of 4.8% compared with the preceding month. The strongest growth in construction was recorded in Slovakia, Sweden, and Poland, while France, Italy, and Denmark experienced declines.
In the Middle East, political tensions have led to lower demand and, at the same time, reduced supply. The largest drop in steel production was recorded in Iran. Saudi Arabia and the United Arab Emirates have also experienced declining demand and reduced production. As conditions in the region improve, steel demand is expected to increase accordingly.
In the domestic market: In the Iranian market, as in recent weeks, politics continued to be the dominant force shaping the economy. On one hand, hopes for an end to the conflict and a possible agreement with the United States, and on the other hand, the visit of an Iranian delegation to Qatar to facilitate the return of Iranian funds, contributed to a decline in the exchange rate. This, in turn, forced the steel market into a retreat.
The exchange rate remains the primary signal for Iran’s steel market. If the exchange rate rises, exports become more attractive and are likely to increase. Conversely, a decline in the exchange rate reduces export incentives, leading to lower exports and higher inventories in the domestic market.
As of now, there is no reliable confirmation regarding whether an agreement between Iran and the United States will be signed. Uncertainty is one of the most damaging conditions for any economy, as it discourages investment and increases unemployment. Naturally, steel demand is also likely to weaken under such circumstances.
If an agreement is reached, the market will gain clarity about its direction. Otherwise, the current state of uncertainty and short-term decision-making is likely to continue. Therefore, as in recent weeks, everything ultimately comes back to one key indicator: the exchange rate.
CBI average ex-rate: Rials 1,470,885/1USD
01 June, 2026
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR