Billet
Billet price was on a downward trend during last week in
Iran domestic market from USD 586/mt to USD 573/mt ex-work including VAT. High
supply level along with weak rebar demand was the reason behind this downward
trend.
Long Products
Rebar
market was faced with some fluctuations and went up, but by end of the week it was
down. Limited demand along with the flow of goods purchased last year to the
market was the cause of this trend. It’s average price
dropped from USD 697/mt to USD 691/mt ex-work.
I-beam
market resisted against upward trend and higher supply from Esfahan Steel co helped
its price decrease from USD 849/mt to USD 804/mt ex-work including VAT by end
of the week.
Flat Products
Mobarakeh
Steel co HRC 2 mm thickness average price changed from USD 1083/mt to USD 1071/mt
ex-work including VAT. HRC market was upward by first half of the week but
bigher supply by Mobarakeh Steel co and the increase in slab price kept its
average price down.
Oxin
co HRP pricee was almost stable by help of the mill’s management and the orders
received from oil sector last year.
Higher
ex-rate made CRC price improved from USD 1308/mt to USD 1313/mt while its
demand was not strong.
HDG
market followed HRC market fluctuations and changed from USD 1287/mt to USD 1336/mt
ex-work by end of the week.
Weekly Analysis:
In
the world market:
Iran's
export billet price has remained stable at around USD470/mt fob, oil price is
in the range of USD80/barrel, besides, shadow of Gaza war has made markets
cautious and this has greatly affected steel demand, in this situation it is
pointless to expect any price increase. On the other hand, USA has sanctioned Khuzestan Steel co, while this
sanction was previously imposed on the transfer of money from the company's
exports. Naturally, there is no serious change in the export conditions of Khuzestan
steel co. It is expected that global flat products decrease slowly. The steel market should also wait for the era after the war in Gaza and
Ukraine.
In the domestic market:
Flat products demand is
not serious, while it is heard that significant tonnages are waiting for import
order registration to flow to the market. Apparently, the scenario of the previous year is repeating itself,
especially that the price gap between flat products and rebar has increased a
lot.
In long products market,
currently, all mills, from billet to rebar producers, are engaged in just market
managing. Rebar price cannot decrease seriously for two reasons:
First is the issue of
prices in the steel chain. Pellet availability is reduced and its price does not seem to decrease, DRI
supply will increase, but its producers will not allow the price to decrease by
selling on credit.
The second reason is the
increase in production costs, especially gas, wages, and freight, which does
not allow DRI, billet, and rebar price to decrease significantly.
In coming weeks due to the supply of rebars sold last
year and lack of demand, market will be downward, but this trend cannot be
sustained due to higher production costs.
CBI
average ex-rate for Steel Products (SANA): Rials 404,384 / 1USD
22 Apr 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM