Billet: Due to lack of supply and high demand, billet price rose during last week in Iran domestic market.
Long Products
Rebar: Higher billet price and lower supply level, made rebar price upward but demand level was not serious.
I-beam: I-beam price was upward due to limited supply level but returned by end of the week.
Flat Products
HRC: Weak demand caused HRC price to drop, supply level increased, but price cannot decrease much.
HRP: Oxin co HRP market was practically stable, demand is low, but price has reached its bottom level.
CRC: CRC market was almost unchanged. Just some sizes experienced limited fluctuations.
HDG: Due to the stagnation of the market and stability of HRC price, HDG price did not change.
Weekly Analysis:
In the world market: Global market does not show any significant change, oil price has risen above USD 80/barrel, but price of scrap, billet and slab has not shown any serious change, considering the current condition in Ukraine and Gaza, no significant change should be expected. Political situation in the world markets is changing with victory of the right wings in Europe and possibility of Trump's victory, but we have to wait.
In the domestic market: Power cuts has seriously affected long products production, while lack of liquidity has become more serious. Most longs producers are dealing with billet shortage but due to the recession, there is no demand for their products, so their production has decreased.
The problem of electricity has reduced flat products production and demand, that's why slab demand in the stock market has reached the bottom.
Lower DRI price has led to the uncertainty that billet price will also decrease, but with improvement in production, DRI price will rise again. Meanwhile, export market situation cannot continue in its current form. The need to export is not only from foreign currency matter, but also excess supply is the main cause of this need. The new government will certainly have a plan for the economy. We have to wait.
CBI average ex-rate for Steel Products (SANA): Rials 428,991 / 1USD
08 July 2024
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM