Billet
Billet market
remained calm due to the stagnation of rebar market and closure of global
markets due to New Year Holidays. Its average price in
Iran domestic market changed from USD 518/mt to USD 513/mt ex-work including
VAT by end of the week.
Long
Products
Rebar price was down due to lack of demand
from USD 589/mt to USD 586/mt ex-work including VAT.
I-beam market also continued declining from
USD 708/mt to USD 692/mt ex-work including VAT.
Flat Products
HRC 2 mm thickness decreased from USD 1008/mt to USD 960/mt
during last week. Lower demand and the market's fear of price increase made prices downward.
Oxin co HRP price also started dropping due to
limited demand from USD 868/mt to USD 865/mt by end of the week.
Due to the silence of the demand, CRC market remained
stable at around USD 1098/mt during last weel, the decrease in the purchase
price at IME caused prices to decrease by end of the week.
With the calmness of HRC market, HDG remained
quiet at around USD 1051/mt ex-work including VAT.
Weekly Analysis:
In the world market:
Oil price is still around USD 70/barrel. Last
year at this time, its price was the same, while billet is offered at a price
of about USD 480 /mt fob. It is expected that seasonal demand will enter the
market before Chinese holiday in february to improve price of billet and iron
ore. But this is before China's holiday, and after that, oil price and China's
economic growth should be monitored. Of course, if the war in Gaza is over by
then. Anyway end of the war in Gaza does not mean the end of the conflict and is
the beginning of political tension. The world cannot Ignore millions of
displaced people, in any case, politics has the upper hand for now, in this
case, capital will wait and move only in safe places like India or USA.
In the domestic market:
Shortage of banking facilities and preference
of politics over the economy, especially the election issue has overshadowed
everything, these two phenomena of lack of money and decision making have
stopped the domestic market.
The gas problem is much weaker than previous
forecasts, in this situation everyone is trying to stay afloat.
The main problem is the stock market
interference. Traders cannot buy any other goods in the stock market except
rebar, as a result, the space for competition is limited, and this makes price discovery
difficult.
The longer this process of duality of the
market continues, the stability of the market will be delayed, this confusion
has caused capital to flee from the steel sector.
The government's policy is to look at the
public sector, elections are coming up
and the need for financial resources can be better met in this way. Last week
the disaster in Kerman killed many innocent people, this tension raised currency
rate. We should wait for
the market after the elections in March.
CBI average ex-rate for Steel Products (SANA): Rials 391,774 / 1USD
08 Jan 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM