Billet
Billet price continued its downward trend to
USD 538/mt ex-work including VAT. Pressure from Iran Mercantile exchange (IME)
and stagnation of the market were the reasons behind it.
Long
Products
The pressure from IME to
reduce prices, severe stagnation of demand and lack of liquidity were the main
reasons for rebar downward trend from USD 627/mt to USD 622/mt ex-work
including VAT.
Lower demand caused I-beam price to drop from
USD 685/mt to USD 677/mt by end of the week.
Flat
Products
HRC 2 mm thickness ex-work Mobarakeh was down from
USD 982 /mt to USD 947 /mt ex-work including VAT by Wednesday. HRC suppliers resisted against downward trend of prices, but market liquidity
problem during the weekend caused prices to drop.
HRP suppliers resisted against price drop, but at the end of
the week, the recession overcame market optimism and lowered Oxin co HRP price
from USD 863/mt to USD 857/mt ex-work including VAT.
The lackluster market along with the lack of liquidity
caused CRC price to fall from USD 1133/mt to USD 1130/mt.
Lower HRC price with market sadness made HDG
price also downward from USD 1148/mt to USD 1147/mt.
Weekly Analysis:
In the world market:
Right at the beginning of the winter, oil price
started a downward trend and reached below USD 80/ barrel. It is predicted to be around USD 80-90 /barrel
until end of November. Iron ore price has increased due to end-of-year demand
from China and has risen to above USD 120/mt. Scrap and billet also has benefited from this trend,
but this trend is not lasting because there is no consistent demand for it.
There are two reasons behind weak demand, first, housing market stagnation in China and second factor is
the Gaza war problem which has kept global markets in a
waiting mood.
In
the domestic market:
Lack of liquidity has become the problem of
all economic activists, this trend was also seen last year, unfortunately, the
situation is different this year because
banking system is in trouble even those who are not familiar with
economic issues know this. Governments have imposed debt credits on the
banking system for many years, though disharmony of banks is completely logical. In this situation, lack of liquidity disturbs
the market, the government is trying to control prices with pressuring the
market, in the meantime, production and trade are more dependent on the banking
network, which puts more pressure on the banks in the current situation. We
have to wait and see the result of domestic steelmakers' performance at the end
of the season.
CBI
average ex-rate for Steel Products (SANA): Rials 374,897 / 1USD
20 Nov 2023
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM