Billet: Billet price Increased due to supply management
and higher exchange rate.
Long Products
Rebar: A decrease in supply on the stock exchange
and a rise in ex-rate caused rebar price to climb.
I-beam: Stable supply-demand level made I-beam
market stagnant, but higher ex- rate at the end of the week caused prices to
rise and return to the beginning of the week rates.
Flat Products
HRC: Supply management, aided by fluctuations in currency
rate, drove up price of HRC.
HRP:
A reduction in supply, coupled with a rise in slab price, led to an increase in
Oxin co HRP price.
CRC: The balance of supply and demand kept CRC
market stable.
HDG: The rise in the exchange rate and HRC price
could not affect HDG market. Zinc price in global markets is declining, and
this affects prices in a context of weak demand.
Weekly Analysis:
In
the world market: The global market is quiet. Scrap price have
risen in the US due to tariffs, and in Turkey due to demand, but have not
changed globally. Billet price has remained stable with weak demand. Flat
products have remained stable, and the European market remained stagnant. In
the past week, Israel began clearing Gaza. Arab countries are gathering in
Saudi Arabia, with the main issue of discussion being the future of Gaza and
its reconstruction. Turkey has begun construction in Syria, and the Iraqi
government has granted permission for the export of Kurdistan oil.
Collection
of all regional economic news indicates an active summer, but Trump's policies
have disrupted everything, preventing long-term planning. Currently, three
issues are affecting the future of world economy: Ukraine, Iran, and investment
potential on the wealth of the Persian Gulf states.
In
the domestic market: The commodity exchange and steel companies are
trying to make up for last nine-month lag. Some companies have reduced supply
level and are allocating a larger percentage of deliveries for next year. Base
price of rebar in the coming days will reach Rials 340,000 /Kilo, meaning a
final price above Rials 370,000. Therefore, billet, according to the stock
exchange formula, should reach a final price of Rials 320,000.
With
the events that are coming, any price drop will not last long. The parliament
has increased next year's taxes while investment, economic growth, and other
economic indicators do not show that achieving this tax level is possible.
Perhaps the government's hope is in the exchange rate.
In
any case, the steel market should expect new price levels, and a return to the
prices of a month ago is not possible due to rising costs. Two months ago,
there was talk of a Rials 350,000 rebar outlook, but today the talk is of Rials
380,000- 400,000.
CBI
average ex-rate for Steel Products (SANA): Rials 671,876/ 1USD
24 Feb 2025
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM