Billet: Last week billet price remained almost unchanged
in Iran domestic market. In fact, power shortage due to the hot weather and its possible
influence on mills’ production rate was an excuse for the price stability.
Mid-week holiday and market closure also made market sentiment quiet.
Rebar: The market has come to the conclusion that rebar price has reached the
bottom, that's why its price did not change seriously.
I-beam: I-beam market remained almost unchanged
because there is no more room for price reduction.
Flat Products
HRC: The mid-week holiday kept HRC market quiet.
HRP: HRP market was stable and
unchanged.
CRC: Weak demand kept CRC market steady.
HDG: Due to the stability of
HRC market, HDG price did not change.
Weekly Analysis:
In the world market:
June has started, followed by holidays and reduced
consumption. In Europe, more than one million consumers do not pay for
electricity using renewable energy, and this issue has questioned the value of
shares of companies active in this type of energy. On the other hand, the level of copper inventory in
China's warehouses has reached a historical record, which indicates the drop in
demand for electric vehicles. Due to the above factors, oil price has
reached below USD 80 and efforts of oil producers to maintain its price in the
summer is quite evident.
The war in Gaza is not
over and there is concern that it will spread to Lebanon, which threatens the
region. In this situation, investors are worried and capital will flee. Apparently, the Chinese have stopped buying gold, which
means something for the markets, but not in the short term. World market is still calm and this will continue until end
of July unless political conditions in the region change.
In the domestic market:
The society is busy with upcoming election and the government will not spend until the
appointment of the next president, so the recession will continue. The problem of power cuts along with the recession has
increased DRI supply as its cash market price is close to IME (Iran Mercantile
Exahnge) prices.
Despite the decrease in billet
production, market price of this commodity is still lagging behind IME prices,
which is due to the liquidity problem. Most rebar producers do not have enough inventory, which
is due to lack of liquidity and power shortage.
The issue that is less
paid attention to, is that power cuts lowers steel consumption, especially in
the industrial sector. All these factors indicate stagnation and the problem of liquidity
shortage.
Indeed, after the
presidential election, the situation will change because the suppressed demand
will return to the market, of course, if the political situation in the region
remains the same.
CBI average ex-rate for Steel Products (SANA): Rials 421,093
/ 1USD
10 June 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM