Billet: Due to the drop in currency prices,
the approaching end of the year, and billet deliveries time in next year, billet
demand receded, causing prices to trend downwards.
Long Products
Rebar: Increased supply has led to a decrease
in rebar price, while demand has stayed back and retreated.
I-beam: Reduced demand and increased sales
offers have lowered I-beam price.
Flat Products
HRC: Increased supply offers have driven HRC
price down.
HRP: Retreating demand has caused a decrease in
Oxin co HRP price.
CRC: Stagnant demand has led to a reduction
in CRC price.
HDG: Decreasing HRC price and falling demand
have pushed HDG price lower.
Weekly Analysis:
In
the world market: Brent crude oil has reached USD 70, and OPEC
oil has fallen below USD 68. The outlook for oil price is not bullish, and the
market is experiencing stability with a surplus supply. Iron ore price have decreased by USD 3-7/mt,
depending on grade and origin, reaching USD104. Given the market recession, a
further decline to USD100/mt is possible.
Billet
price have fallen by up to USD10/mt.
Under these conditions, there is little hope for price recovery, as consumption
does not indicate an increase.
The
Ukraine war has strengthened European unity, with discussions of issuing joint
bonds through the European market instead of individual countries. This trend
could further unite Europe in developing policies, particularly in the steel
sector, leading to increased competition in other markets.
In
the domestic market: Two main issues have caused market depressed,
significantly reducing demand:
Removing Economy minister from the government
by parliament has created market uncertainty regarding currency price trend.
Threats from Trump and his alleged letter campaigns have significantly impacted
this situation.
Rumors
of a steel company's potential bankruptcy, circulating for two months, have
caused the market to retreat while awaiting clarity.
The
general expectation is that prices will not rise in the coming year due to
increased supply. A significant downward price trend is also unlikely due to
increased costs and the unknown status of wage increases. All analysis are
based on the assumption that there will be political and exchange rate
stability.
CBI
average ex-rate for Steel Products (SANA): Rials 676,779/ 1USD
10 March 2025