Billet
Billet price trend was downward in Iran doemstic
market last week from USD 564/mt to USD 554 /mt ex-work including VAT due to
weak rebar demand. Lower DRI price increased possibility of further decline in
billet price. Downward currency rate was
also effective.
Long
Products
Rebar price was downward from USD 683/mt to
USD 672/mt due to weak demand and the decrease in ex-rate, which kept customers
waiting.
I-beam price also fell like rebar from USD
792/mt to USD 778, the reason of which was lack of demand.
Flat Products
Mobarakeh Steel co HRC 2 mm thickness average price
changed from USD 1049/mt to USD 1007/mt ex-work including VAT. Weak demand
caused HRC price to drop. Imported cargoes also helped this trend.
Limited demand and lower ex-rate also affected
HRP price as Oxin co HRP average price dropped from USD 899/mt to USD 876/mt by
end of the week.
Imported CRC availability in the market along
with lower exchange rate made domestic CRC market down from USD 1294/mt to USD
1249/mt ex-work.
HDG market followed HRC price trend and
changed from USD 1271/mt to USD 1258/mt.
Weekly Analysis:
In the world market:
Oil, iron ore and scrap price has remained
almost constant, signs of a decrease in demand is also seen. Gaza and Ukraine
war contributes to this process. In
the short term, UAE flood issue has silenced the steel market in the region,
which affects prices. Regional and world markets do not expect serious changes
in coming days.
In the domestic market:
Stock market
and mills are resisting against downward trend in prices with different
policies. The fact is that there is no room for producers to reduce
prices more, but demand is scared, for two important reasons, firstly,
political issues that cause buyers to be cautious, secondly, the decrease in ex-rate,
which is expected to have a strong downward trend.
It should not
be forgotten that pellet availability is limited and this will affect DRI price.
Currently, DRI is not in serious demand. With the start of power
shortage from
next month, DRI supply level will increase, but pellet problem will not allow a
serious price reduction for DRI.
Domestic
market needs two weeks of rest to adapt itself to this condition, during this
interval, government's foreign exchange policy will play a major role.
CBI average ex-rate for Steel Products (SANA): Rials 410,043 / 1USD
29 Apr 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM