Billet
Lack of demand made billet price downward during last week of 2023
in Iran domestic market from USD 529/mt to USD 526/mt ex-work including VAT.
Long
Products
Rebar price was downward from USD 604/mt to
USD 601/mt ex-work due to limited demand level.
I-beam was down for the same reason from USD
715/mt to USD 713/mt by end of the week.
Flat Products
HRC 2 mm thickness improved from USD 963/mt to USD 1007/mt
during last week. The sharp drop in supply along with slab
supply stoppage from Mobarakeh Steel co and the increase in its price in the
stock market caused prices to rise.
Higher slab price made Oxin co HRP also upward
from USD 853/mt to USD 865/mt ex-work including VAT by end of the week.
Limited supply level in domestic and import market
made CRC price up by USD2/mt to USD 1094/mt.
HDG market did not change seriously despite higher
HRC price. Demand level and some delayed peyment sales didn’t let prices change
significantly. It was chaned from USD
1061/mt to USD 1056/mt.
Weekly Analysis:
In the world market:
Global markets are practically closed, so no
serious change in prices can take place. Billet price has
slightly improved and reached the range of USD480-490 /mt fob. Oil has faced a
slight increase in price due to shipping issues, but the real market will show
itself after the Chinese Lunar New Year holiday in February. The war in Gaza is
not over yet and for now the markets are waiting.
In the domestic market:
Since beginning
of last week, the restriction on banking facilities has become very serious. On
the other hand, the ambiguity in the issue of export duties has caused
confusion in the market too, although there are rumors that these duties will
be canceled, but the effect will not be seen quickly due to the New Year
holidays.
Long products
market is practically involved in the issue of financing, and this does not
allow the market situation to be clarified. Flat products market is in different situation. Gas problem has caused a shortage of slab
production and this process will intensify. Naturally, flat products production is
affected by this, while consuming sections have demand. Therefore, prices are
upward.
On the contrary,
according to DRI production shortage, it is predicted that billet supply will
be limited. Many rebar mills trying to sell at IME to finance more, but due to
limited demand, they have not been succeeded in selling. The same is true for
billet.
While 90,000
tons of DRI are offered in the stock market, the mills supply nearly 200,000
tons of billet. The question is, is this amount of billet really produced?
CBI average ex-rate for Steel Products (SANA): Rials 387,240 / 1USD
01 Jan 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM