Billet
Domestic billet
market was downward due to weak demand, lower ex-rate and export
prices. Its average price dropped by USD 3/mt to USD 541/mt ex-work including
VAT.
Long
Products
Weak demand, market negative sentiment and
lack of liquidity caused price of rebar to decrease from USD 650/mt to USD 642/mt
by end of the week.
Lack of demand made
I-beam price also downward from USD 742/mt to USD 728/mt ex-work including VAT
by end of the week.
Flat Products
Mobarakeh Steel co HRC 2 mm thickness average price
changed from USD 946/mt to USD 915/mt ex-work including VAT. Weak demand and lack of
liquidity caused prices to fall.
Oxin co HRP has almost reached its bottom,
that's why it did not change seriously due to weak demand of the market.
It was around USD 865 – 866/mt.
CRC demand was weak, while Chinese material
was available in the market. Lower
currency rate made import cargoes downward and pressured domestic products.
CRC average price changed from USD 1200/mt to USD 1177/mt by end of the week.
With the downward trend of HRC, along with lower
ex-rate, HDG price was also downward from USD 1235/mt to USD 1207/mt by end of
the week.
Weekly Analysis:
In the world market:
Unfortunately, the war in Gaza continues, oil
price has not changed seriously, billet and scrap price has also remained
almost unchanged despite weak demand, stagnation in Chinese market continues,
while inflation rate in the United States does not seem to decrease, thus its Interest
rate won’t drop too. The mistrust of investors will continue due to
the war in Gaza and Ukraine. Maybe we should wait for the election in USA
that might change political condition globally.
In the domestic market:
Billet price
was downward, while induction based billet is facing with limited supply,
naturally, as billet price works as a base in the stock market, base price of
pellet and DRI will also decrease.
Rebar supply was
not welcomed by buyers because there is no consumption, while most of mills do
not have availability of all sizes, tonnages of 500 tons or above is being offered
in the market, which shows the problem of liquidity, not the real supply. Stabilization of export exchange rate and the
restrictions on the return of foreign currency have created many problems for
the mills.
China steel
export from January to April this year exceeded 35 million tons, which has not
been recorded since 2016. China is also taking control of markets in the Middle
East, which is our export competitor. Continuation of this trend will cause heavy losses for Iran
steel industry. Currently, domestic billet price is not attractively far
from its cost price, that's why offers are mostly for show not real.
Maybe in June,
we should expect a jump in prices, of course, if market policies change,
otherwise we will witness closure of some production units.
CBI average ex-rate for Steel Products (SANA): Rials 415,271 / 1USD
13 May 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM