According to the Iranian Steel Producers Association (ISPA), steel prices are expected to fall due to weak demand in China. The analysis notes that the government is expected to support further production of hot-rolled coils. In general, it seems that with the change of government in Iran, some of the sabotages that we witnessed in the private organs will gradually become supported. It remains to be seen what direction the market will take by the end of the summer. In the following, we will explain this issue. Please be with Artan Press.
*** Reduction of Iranian steel prices following China
The Iranian market is highly dependent on developments in the Chinese market. The decline in steel prices in Iran is a scenario that has taken its toll on China. ISPA Secretary Khalif Soltani has announced that in the short term, amid falling demand for steel due to rising Covid-19 cases, steel prices are expected to fall. The rapid and critical increase in the incidence of coronary heart disease in at least eight major Chinese cities has negatively affected steel demand. In the short term, steel prices are expected to fall, but steel traders in Iran are looking to increase steel prices, and it is likely that the “outbreak of Delta Couvid 19” could lead to a balance in the global market.
*** The new government supports Isfahan Mobarakeh Steel production line
The new government will take office soon and introduced its proposed cabinet to parliament yesterday. The newly elected government is expected to support Mobarakeh Steel to end obstacles in its second hot-rolling unit. This will generate three million tons of HRC. This project is a nationally defined project. Therefore, it must be completed as soon as possible. Due to energy constraints, six million tons of sheets are required. With the support of the government, new projects must be created to produce steel sheets to balance the market. The supply and demand of flat steel sheets in the market are not equal and are affected by liquidity confusion and end consumers. At present, in the short term, no path can be considered for Iranian steel.
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