Billet: Considering limited supply of mills, billet price increased slightly.
Long Products
Rebar: The increase in billet price and lower supply
of rebar caused its price to rise.
I-beam: Whole sale of I-beam by Esfahan Steel co raised its price.
Flat Products
HRC: Power restrictions reduced HRC demand, despite
supply management, prices did not change significantly.
HRP: Equality of supply and demand made HRP price stable.
CRC: Limitation of power supply kept CRC demand
stable, but since its price has reached the bottom, there was no significant fluctuation
in CRC price.
HDG: Stable HRC market maintained stability of this
product until Wednesday, but due to fluctuation of currency rate on Wednesday,
an increase was seen in HDG market.
Weekly Analysis:
In the world market:
The trend of
prices in the world market for oil, iron ore and semi-finished steel is
downward due to the drop in global demand. On Friday, the sharp
fall of global stock markets, which was unprecedented in the last 8 years, put markets
into a coma which will take time to repair. Issue of the conflict between Iran
and Israel has brought all investments under its influence. If this crisis is not managed, it is not clear in which
direction the world economy will go, especially since the Middle East region is
no longer known as an oil supplier, but is planned as a capital hub.
In the domestic market:
Power cuts is
still the determining and influencing factor in Iran domestic steel market,
until the power supply returns to normal, supply and demand will remain at
their minimum. Housing production does not match the trend
of traditional methods and the accumulated demand in this sector in any way,
there is a need to adopt new methods of housing production. Acquiring these methods requires political and monetary
background, along with planning and providing financial resources. Considering the existing tensions, it is completely
pointless to expect constructions to increase.
The largest
consumption of steel is in the construction sector, which should not be
expected to improve due to sanctions and budget deficit. The only remaining alternative is export, which is also
stopped by the existing rules. Therefore, in the current situation, power outages is a disaster for production,
but it can also be a blessing that controls the market. As a matter of fact, after its establishment, the
government will look for reopening of export market, because stopping exports
on the one hand will harm the foreign exchange resources of the country and on
the other hand, it will cause more imbalance in the budget.
In a shorter
analysis, due to Arba’in coming up and lack of establishment of the new
government, domestic demand will remain low, and the power cuts is helping
market stability.
CBI average ex-rate for Steel Products (SANA): Rials 440,374/ 1USD
05 Aug 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM