Billet: Billet price remained stable during
last week in Iran domestic market. Despite increased supply, market demand and delayed
payment sales helped maintain prices.
Long Products
Rebar: Downward trend in rebar prices has started, higher
billet supply will intensify this trend.
I-beam: I-beam price did not change much thanks to supply
control.
Flat Products
HRC: HRC price trend was downward. The problem is in demand level.
HRP: The problem of demand and supply control kept HRP market unchanged.
CRC: Higher supply level and retreat
of demand lowered CRC price.
HDG: Lower HRC price made HDG market downward too.
Weekly Analysis:
In the world market: The world market is still in recession, oil is below USD 80
and will probably stay at this level for a while. Billet is in the range of USD
450-460 /mt due Chinese dumping, its higher export have even made Turkish mills
worried. Meanwhile, the global market is in recession and doesn't seem like it
will get out of it this year.
In the domestic market: The increase in billet
supply at IME (Iran Mercantile Exchange) has started. Billet price is expected
to drop slowly. Mills will increase supply in the first step, then sell on
credit, but in the coming months gas shortage and its consequences
will determine market trend.
In the case of flat products, the situation is
different. 14 rolling mills are under construction (using
slab for production), 8 of them will start operating by end of the year, increasing
slab supply will help their production. Naturally, pipe and profile markets will be
more competitive too.
The government should accept excess supply and
not only free but also encourage export of steel, especially finished products,
because the investments made are not small. With the government's encouragement, steel
market can make a big contribution to foreign exchange. However, the market is
currently in recession and this recession is not only in Iran. Naturally, until
the situation changes, prices will tend to fall unless currency market changes
its direction.
CBI average ex-rate for Steel Products (SANA): Rials 456,580/ 1USD
16 Sep 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM