Iran Steel: Imports of iron ore in China fell sharply last week, with prices ranging from $ 114 late last week to $ 91 a tonne CFR for a 62 percent purity. As of July 31, the price of this raw material has dropped to $ 29 a tonne. The sharp drop in demand, improved supply in Brazil and uncertainties in financial markets have fluctuated the market situation for this commodity, and apparently the free fall of iron ore estimated for the second half of 2019 has begun. The purchases were made only to meet the urgent need of the factories and everyone was waiting for the market trend to clear up.
Prices in the Iranian export iron ore market were down, and according to Umetal, the latest price for the magnetite purity iron ore was $ 45.8 per tonne $ 45.8 per tonne last Wednesday, and the hematite hematite iron ore 61 percent. $ 44.2 per tonne was FOB.
Iranian Steel: In Turkey’s import market, the price of heavy scrap 20-80 at the end of the week was about $ 289 to $ 290 per tonne CFR, compared to $ 292 to $ 300 a week earlier. The market was silent and not very active. Even most suppliers have decided not to bid and are lagging behind.
Japan’s Class 2 export scrap prices dropped about $ 3 per tonne in August from $ 262 per tonne. In the domestic market, the price of scrap was reduced to $ 9.
In the US domestic market, scrap scrap improved from $ 279 to $ 282 per tonne.
Iran Steel: China’s export bill reached $ 493 per tonne of FOB last week, which was relatively stable.
CIS export bill $ 5 cheaper $ 413 per tonne FOB. Suppliers, of course, are reluctant to sell because their August supply is limited.
Lack of demand kept the billet market in Southeast Asia quiet and prices were stable. Bids of $ 5 were dropped from $ 440 to $ 445 per ton of CFR.
In Turkey, imported bills ranged from $ 415 to $ 425 per tonne of CFR, which fell $ 5 to $ 10. On the domestic market, the bill ranged from $ 425 to $ 435 per tonne.
Billet in the Iranian market
Iran Steel: Bullion prices were up last week from 38650 rials on average on Saturday.
The increase in bullion prices was due to several reasons
First, bullion exports continue
Second, sponge iron deficiency, which has been reduced due to the closure of several suppliers and the problem of electricity, production and supply
Third, the stock market turmoil until Wednesday, when Khuzestan Steel finally sold 30,000 tonnes of bullion at 35423 rials, while the previous average price was 36292 rials, making the market slightly calm. Bullion was on the market by noon on Wednesday, causing a bullish trend. Two things are important in the current situation:
First failure to enforce the circular dated 02/05/98 based on the bullion offer to those who have registered on the site. The directive met with intense resistance from bullion and rolling stock manufacturers, and the likelihood of its implementation is unclear. However, it is not applicable in the current situation where pellets and sponges are at their peak due to reduced production.
Second, Iran’s industrial production has increased and is no longer permissible. The market did not respond to the MoD’s behavior, and it slowed down because the market function was much greater than the MoD’s power. This applies not only to steel but also to other items such as cement. The government must have realized that the methods of the past 40 years are no longer applicable and should leave the economy to itself, rather than control, control and direct.
Iran Steel: China’s rebar exported $ 4 cheaper $ 505 a tonne of FOB last week. In the Chinese domestic market, the rebar was $ 529 to $ 534 per tonne factory-owned and stable.
CIS export rebar was also stable at $ 455 per tonne FOB. Turkey’s export rebar was $ 460 to $ 465 per tonne FOB and in relative stability. But buyers didn’t ask for more than $ 450 to $ 455. In the domestic market, the suggested rebar price is $ 460 to $ 470 per tonne.
492 euros per tonne of factory doors were heard in the European market, down 3 euros. In the US domestic market, the rebar also stabilized at $ 645 per tonne factory door shorts.
Sections in the Iranian Market
Iran Steel: Round bars fell 42423 riyals on Saturday to 42293 riyals on Monday, but offsets backlogs to 42611 rials by the end of the week. There were two main reasons for the ups and downs of the round bar:
First was the confusion about the price of bullion, which was revealed by Tuesday.
Secondly, the mismatch of the price of the round bars with the bullion and the very narrow margin of the riders’ profits, which increased the price.
According to the Association of Steel Manufacturers, exports of rods rose 53 percent in the first quarter of this year compared to the previous year, while intermediate steel declined 23 percent. This is the process that should have been led by the Ministry of Health from day one. If the Ministry of Health today bans bullion but releases its price and the factories sell their stock for up to three months, the market will be stable. Because he knows his job and is confident in the supply of raw materials. As a result, it will be easier to export a product that is more value added and creates more employment. In addition, there is greater confidence in the return of funds exported for various reasons. Some of the foreign exchange earnings can be earmarked to supply raw materials to the smelting plants, of course.