Analysis of last week's market situation

Global Market

billets and scrap have not changed and the oil price continues to hover below $80. The war in Ukraine and the Middle East remains unchanged, and the outlook for the Chinese market and the country’s economic growth next year is not particularly optimistic. It seems that everything depends on the US elections, which will clarify many political issues and subsequently the global economic landscape.

Iran domestic Market

Two issues are significantly impacting the domestic market.
First, political issues have diminished investment motivation and completely replaced it with caution; under these circumstances, capital is drawn to currency or gold. Warehouses are empty, and factories are unable to sell their products. In this situation, exporting billets and slabs is entirely justified. Once the political issues are resolved, which is not far off, the market will be devoid of intermediate steel and products, and there will be high demand for currency, as governments traditionally face currency problems from late autumn onward. The exchange rate of gold in the currency and gold markets in November and December is significantly different by 65,000 tomans.
Second is the gas issue, which affects the production of sponge iron and billets. It is said that this year's gas situation is more serious than last year, leading to a reduction in production volume, which will naturally increase prices.
Given the U.S. elections, the aggressiveness of Israel, and structural problems in Iran’s economy, this year is not typical. Besides all this, there is also the upcoming budget for next year, which has generated a lot of discussions. The coming days will not be calm.