General News
Billet price experienced an upward trend during last week in Iran domestic market This trend was quite predictable. Last week's price increase was due to two factors


The first factor was higher ex- rate, which changed export price of billet and, of course, affects the base price of it at IME (Iran Mercantile Exchange).

The second factor is shortage of DRI, which will intensify in coming weeks due to electricity supply limitations for producers in summer time due to higher demand of residential areas.

It should not be forgotten that last week global billet price had been declining and some reports have been emerged of a new COVID-19 outbreak at Beijing market which will affect billet global demand level. On the other hand, demand in the domestic market has reached its minimum, so in order to solve the problem of steel market, we must pay attention to the supply sector and the role of government and its policies about this sector.

Long Products

Rebar price which was USD 456 /mt last Saturday, reached USD 506/mt ex-work including VAT on Wednesday, but market resisted against this price and therefore, despite higher billet price at IME, which brings rebar cost price to near USD 480/mt for producers, the market stopped. The reason for this resistance is low purchased rebar cargoes that have been bought during current previous weeks at USD 31 -62/mt lower than current levels, and today's market price makes it attractive for their sellers to offer them.

 Some market insiders believe DRI supply level is limited, its base price will rise and ultimately affect billet and rebar prices. Therefore, market resistance cannot last for more than a week or two.

  What happened to rebar market was also seen in I-beam market.

 I-beam sizes 14 to 18 which was USD 561/mt ex-work Esfahan by beginning of the week, reached USD 597/mt by last Wednesday.  As price of I-beam size 14 passed USD 616 /mt by end of last week, its price will be upward in near future.

Flat Products

Price of  2 mm thickness HRC on Saturday was USD 647/mt ex-work Esfahan and in Ahwaz nothing was being offered, but on Wednesday price in Esfahan market reached USD 677/mt and in Ahwaz it was USD 647/mt.  Price of HRC thickness 3 to 15 mm was priced at USD 627/mt on Saturday, which reached USD 660/mt by Wednesday. As Mobarakeh Steel co is controlling market stability, the main reason for the sharp fluctuation in prices was higher ex-rate.

Oxin co HRP thickness 10 - 40 mm were priced at USD 715/mt on last Saturday, which increased to USD 750/mt by end of the week. Oxin co HRP demand is not the same as in previous months, and it seems that the market has calmed down a bit. Kavian CO HRP thickness 12 - 25 mm was USD 611 /mt on last Saturday, which reached USD 687/mt by Wednesday.

CRC had a very turbulent market last week. By last Saturday nothing was being offered. Average price of thicknesses 0.40 -2 mm on Sunday was USD 1081/mt and by Wednesday it reached USD 1139/mt ex-work including VAT. As main consumers are out of the market, CRC market has become very limited.

HDG thickness 0.50 -3 mm was priced at an average of USD 1016/mt, but increased to USD 1081/mt by Wednesday. Higher ex-rate and rising zinc price were factors behind this upward trend.