Billet
Limited demand level and lower ex-rate made billet average price
downward during last week in Iran domestic market by USD 2.5 /mt to USD 527 /mt
ex-work including VAT.
Long
Products
Being last week of the month and the season
caused a severe slowdown in transactions and a drop in prices and rebar wad
down from USD 604/mt to USD 601/mt by end of the week.
I-beam price started the week upward from USD 699/mt
to USD 716/mt but finished the week lower at USD 714/mt due to lack of demand.
Flat Products
HRC 2 mm thickness improved by USD 26/mt to USD 956/mt during last
week. Cancellation of Mobarakeh Steel co
transactions and its renewal improved prices, while demand was still weak.
Supply management
made Oxin co HRP up from USD 854/mt to USD 866/mt ex-work including VAT.
Higher HRC price could not change CRC market
and demand level remained stable. Price was around USD 1093 /mt ex-work
including VAT.
HDG price declined from USD 1062/mt to USD 1057/mt
during last week. Market was quiet and ex-rate dropped slightly, therefore, HDG
price declined too.
Weekly Analysis:
In the world market:
Oil price stayed in the range of USD 70 /
barrel, billet price is relatively stable, as well as scrap. Year-end demand,
which had caused a relative improvement in the market, has stopped. The issue of shipping in
the Gulf of Aqaba has kept everyone in suspense for now, political movements in
the region is very high, everyone is afraid of the future, while the main planners may not
be in the region.
In the current situation,
waiting policy prevails over the economic activists, but a look at the oil
supply explains the future perspective. Iran and Russia are under sanctions,
Saudi Arabia is reducing production under the pretext of controlling the
market, but USA has become the largest oil producer while supports Israel the
most.
In any case, prediction of
most of the people involved is that the market will be calm and quiet in the
next quarter, so that calmness returns to the markets.
In the domestic market:
Mid-week market closure due to religious
holiday, being the last week of the month and the season, which is associated
with the limitation of bank facilities, made Iran steel market quiet. The shock
of imposing tariffs disrupted the market. Although this decision cannot be
sustained, in any case, in the coming days the market will show itself and it
will be clear whether lack of DRI is decisive or the conditions of global
markets.
If the tariffs are canceled, the market will move
and if this is not the case, ex-rate will react, any way the coming weeks would
witness many events.
CBI average ex-rate for Steel Products (SANA): Rials 386,958 / 1USD
25 Dec 2023
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM