Production was minimal, the fluctuations were maximum Visit: 1650
An analysis of the steel market over the past week;
Last week the price of Billet was bullish. In addition, with the reduction in demand for Billet, the bullish price trend continued during the past week. The price increase in some sizes of Bilat was due to the limited supply of sponge iron. The price of sponge iron over the past week has exceeded 740 USD, due to the severe restriction of the supply of sponge iron on the part of suppliers, which has two main reasons. First, manufacturers Sponge iron is considered to be the preferred exporter of this product, and the second most effective heat source is the low volume of production.
At the same time, it was offered at a price of 715 and 720 USD last week, but the volume of these shipments was very low and could not have played a role in the market, but since the price of bullion reached its peak, and the demand for sections due to this jump to a minimum The bullish price trend was stopped.
On Wednesday, last week, the Esfahan Steel Company sold 82,000 tons of its product on the stock market as a result of the market slowing down, which helped to stabilize bullion prices. Meanwhile, there are whispers about the temporary suspension of Chadermouli to the service. Since this is the main supplier of pellets to sponge iron mills, we will likely see other fluctuations in the market in the coming weeks. It is said that other factories producing sponge iron will be produced by the end of this year and the capacity of sponge iron production will increase to 25 million tons, which is currently about 17 million tons.
But the problem is not just the volume of the supply of sponge iron, the problem that exists between the sponge iron and the ingot is that there is no balancing in this market to help balance its market conditions. In the situation where bullion prices were low and nobody was looking to stockpile the ingot, spin-iron factories began to export to maintain themselves and succeeded as a result of the domestic market was in short supply.
This process will not be stopped easily, and this will continue until the next three months, as the country's execution structure is still unclear, and the situation will remain the same until the end of September. In the event of an increase in the production of sponge iron, this imbalance will still be present. The Iranian economy has defined the production of the axis during the last 30 years, while this production in the market must be exchanged. Until this market is defined, the sponge iron producer will seek to increase exports and will make its profit. Ingots should be looking for sponge iron.
The average price of rebar was up by the end of last week. On Saturday afternoon, the price fluctuation began.
It is noteworthy that the minimum price of a melt mix basket consisting of round bars, studs and slips is based on each kilogram of 16,000 Rials. Indeed, in the coming weeks, we should see an increase in the price of ironmaking products up to the base of 17,450 Rls per kilo. The deal stabilized the bullish trend in price levels.
Last week, the Neishabur factory had a minimum price increase. Most of the experts were surprised at the policy of the factory. We should not forget that Neishabur produced his own. The relative stability of the prices of the products of this factory and the ironmaking of Isfahan is due to the fact that these two self-sufficient factories are in the supply of raw materials, which is why they were not in the price of steel ingots, while other factories need to supply bullion, with the price change of their ingots also forced They are changing their commodity prices. A point that is noticeable in this respect is the volume of inventory of the material of the producers of the sections. Due to the long-term stagnation of the market and the lack of clarity of the prospects for the forth quarter, all factories have minimized their inventory of inventories, in some units this The inventory is for production of three days. Any change in the supply or price of raw materials will quickly affect the market for the manufactured goods. This time the fluctuation of the supply of raw material was inclusive, and this was the reason why it was accelerating.
The general trend of the price of the cornice and studs last week was like rebar. Prices rose from Saturday to Tuesday, but prices fell on Wednesday. The next week, it should be stable, because of the weekend holiday, along with the rest of the market needed to recover from the tension. Given the limited supply of sponge iron and the base price of iron smelting on the stock exchange, prices are still rising. The warm sheet had a bullish trend since the beginning of the week. The main reason for the change in the price of this commodity was the supply limitation on the part of MMPC, while the product of the Gilan and Ahwaz was lower in the market but demand was limited.
The cold sheet collapsed in the middle of the week, with an increase of 200 kilos for some thicknesses, due to the rumors that it was subject to restrictions on clearance, but the market is so indelible that the rumors do not affect it. In this case, the market is calmly galvanized There was no change in prices.