Billet: Quiet long products market and supply of credit-purchased billet
caused domestic billet price to drop during last week in Iran.
Long Products
Rebar: Rebar price remained almost stable as it has bottomed.
I-beam: Lack of demand caused price of steel beams to drop.
Flat Products
HRC: Lower demand
made HRC price downward too.
HRP: The market downturn lowered Oxin co HRP price.
CRC: Shortage of some thin sizes and their
price increases caused CRC average price up.
HDG: The increase in the price of some thin-thicknesses increased
HDG average price, but the market remained stagnant.
Weekly Analysis:
In the world market: The global market is facing a limited price drop, with billet
down by $10 and scrap also showing a decline. Oil remains in the $70 range, and the Chinese continue to sell their goods
at a discount due to fear of US sanctions and economic recession. The market outlook remains bleak until the new Middle
East map is clarified. The
situation in Syria has dragged Turkey and Russia into the Middle East, and it
is unclear what the fate of the steel market will be in this situation. Turkey's
involvement in Syria will certainly affect the country's steel market, and the
result will be seen on Iran's export level too.
In the domestic market: The Commodity Exchange stopped buying billet for traders,
but this caused a sharp decline in demand, while billet price has reached the
peak.On the other hand, production costs are increasing.
Last week, it was announced that steelmakers
must buy gas in excess of their quota based on 30% FOB Persian Gulf. While before that, they were paying 10% more than the approved price for
their excess consumption, this is while producers are facing a gas shortage,
and this has reduced their production.
Naturally, with the reduction in production,
the cost price increases. Other production costs have also increased, so Iranian producers are facing
an increase in cost price on the one hand, and a decrease in production and,
more importantly, a drop in sales, while the Chinese invasion of Far Eastern
markets has put pressure on exports. The result of all these factors is an increase in prices and a decrease in
supply.
Political tensions have also strengthened the
precautionary motive and reduced demand to a minimum. In this situation, the steel market needs a stimulus, while one of the most
important targets of the sanctions defined by the Trump team is Iranian steel
exports. The same trend occurred last year, but external factors were less involved,
and we experienced the results in the last three months of the year. Given the current conditions, will this year also experience the same
conditions as last year?
CBI
average ex-rate for Steel Products (SANA): Rials 518,571/ 1USD
02 Dec 2024
M.Chitsaz
Iran Steel News
Bulletin
IFNAA.IR
IRSTEEL.COM