Billet
Higher
supply level made billet price downward in Iran domestic market by USD 5/mt to
USD 560/mt ex-work including VAT.
Long Products
Rebar price rose from USD 619/mt to USD 622/mt by end of
the week as ex-rate improved.
I-beam market was downward from USD 693/mt to USD 688/mt
but as ex-rate improved by end of the week it rose to USD 690/mt ex-work
including VAT.
Flat Products
Mobarakeh
Steel co average HRC 2 mm thickness price declined by USD 2.5/mt to USD 988/mt
ex-work including VAT. Supply management by Mobarakeh Steel co and exchange rate
change, slightly raised average price of HRC by end of the week.
Lack
of demand kept market of Oxin co HRP mostly stable. Its
average price changed from USD 898/mt to USD 892/mt by end of the week.
Absence
of demand made CRC market downward from USD 1158/mt to USD 1155/mt ex-work
including VAT.
Weak market kept HDG market calm at around USD 1116/mt
ex-work including VAT during last week in Iran domestic market.
Weekly Analysis:
In
the world market:
China
market was in holidays and naturally Far East market was also quiet, so demand
for the minerals and steel products was stopped. Oil market is also quiet. Scrap and billet market were also quiet due to Chinese
holidays, so we should wait for Chinese market participants come back from
holidays in coming days, which usually causes movement in demand for steel and
mineral products.
In the domestic market:
China
market was closed which affected transfer of currency and increases its rate. But oil demand will also decrease and this issue will
affect supply of currency in the next month, while demand for currency will
increase at the end of the year, this issue will affect prices next week.
As
gas shortage of DRI mills is over, this issue will reduce its price until end
of the year, billet is still facing with high demand because rebar producers mostly
are behind in production. Market has time only until March 15 to move before New
Year Holidays in Iran, and due to Holy month of Ramadan, there will be
practically no news until the end of April in the market. While supply level at stock
market will continue.
The
market of HRC thickness of 3 to 8 mm is at Mobarakeh Steel co hand, and domestic
market prices are about 30% higher than global prices. Mobarakeh steel co imposes
this price on consumers by managing the supply. HRC thickness of 10 mm and
above with intense competition of different mills has limited market volatility. The
increase or decrease of slab price has the greatest impact on price of these
goods. In coming days, billet and slab will determine the market
trend.
CBI
average ex-rate for Steel Products (SANA): Rials 393,519 / 1USD
19 Feb 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM