Billet
Billet price was
upward due to higher prices at IME (Iran Mercantile Exchange). It was up from
USD 666 /mt to USD 681 /mt ex-work including VAT. Despite the price increase, buyers
were not interested in offers at IME.
Long
Products
Higher billet price, made rebar also upward
from USD 723/mt to USD 744/mt, but its market trend was similar to billet
market sentiment. I-beam price also followed its upward trend at IME. It was up
from USD 742/mt to USD 760/mt ex-work including VAT.
Flat
Products
Mobarakeh Steel co 2 mm HRC was USD 1133/mt on Saturday, which reached USD 1163/mt
by Wednesday. Despite the price increase at IME, HRC was welcomed in the market.
Part of this interest was due to Mobarakeh Steel co credit sales and the other
part was due to the mill’s policy of restricting supply and market control.
Oxin co HRP started the week at USD 1363/mt, it was almost stable till
mid-week then became downward to USD 1340/mt by end of the week. Kavian Co HRP
had a stable week.
Limited supply level made CRC market upward from USD 1375/mt to USD 1396/mt.
HDG market was almost stable during last
week in Iran.
Weekly Analysis:
Iran steel market prices depend on
several factors including price and demand in the global markets, domestic
market demand and exchange rate.
1- Global prices have almost
reached the bottom and price fluctuations is not severe like last month. If the
situation continues like this, prices will decrease slightly in the second half
of the year. What is affecting this market is the rainy season, return of India
after the pandemic and oil price, which are the three main factors influencing steel
market.
2- Until the presidential election in Iran, there will be no change in domestic
market demand. Two factors are affecting the domestic market. The first is the
new conditions for export by the commercial sector and the second is the issue
of power outages, which is very important for the mills. Power outages can
reduce steel production by up to 40 percent.
3. Ex-rate is waiting for the Vienna negotiations, in which, if reaching an
agreement, market will wait for the exchange rate to fall. Falling currency
prices will cause a sharp decline in the export market, and this will be
quickly reflected in the base prices at IME. But due to rising prices, especially
raw materials, price reductions cannot be sustainable. In general, if Joint Comprehensive Plan of Action be signed, the market will endure a tension, but after that, it will have an upward
trend.
CBI
weekly average ex-rate for Steel Products (SANA): Rials 202,061 USD
08 Jun
2021