Last week, CIS billet exports in the Black Sea increased from $ 552.5 to $ 555 per ton, while the import billet price in China continued at $ 515 / t (CFR).
The limited demand for Sponge Iron still continues. Prices are thought to have been affected by the announcement of a hike in natural gas and electricity prices in March, as they do every year.
According to experts, after about three months, when the demand for sponge iron begins to increase, it is thought that producers will need capital investment to meet the demand. Sponge conversion contracts with the commercial sector are expected to cause a limited decrease in the price of this commodity.
The increase in the demand for sponge iron increases the need for iron ore pellets, while the consequent increase in the price of pellets will affect the price of sponge iron in the coming year.
In addition, the Mobarakeh Steel demanded a new pricing formula, which would mean a sharp increase in the prices of its products.
As a result, the market's perspective is oriented to the exchange rate, and since the increase in world prices is reflected in the Iranian market with a month interval, the fluctuation in the exchange rate is expected to affect the products faster.
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