Trends and challenges across the Middle East

The rebar market in Egypt saw a significant price increase from EGP 1,500 to EGP 6,980 in the week ending January 

Surge in Demand in Iran for Colored Sheets, Hot Sheets, and Slabs Reshapes Transaction Landscape

In January 2024, transactions on the Iran Commodity Exchange influenced Iran's steel market, with colored sheets, hot sheets, and slabs standing out as major contributors.

The transaction volume-to-supply ratio of colored sheets increased from 18% in December to 98%, marking an 80% increase, the highest among all iron and steel chain products. 

In December, hot sheets and slabs ranked second in transaction volume to supply ratio, with hot sheets increasing 15 percentage points and January's supply reaching 434 thousand tons.

Slabs also saw an uptick in the ratio of transaction volume to supply, reaching 81%, a 5-percentage-point increase compared to December. In tandem with hot sheets, the supply of slabs expanded in January, reaching 257 thousand tons.

However, a contrasting trend was observed in the transaction analysis of billets, where the ratio of transaction volume to supply dropped from 63% in December to 42% in January. This decline marked one of the lowest ratios recorded compared to previous months.

In January, iron ore trading saw a 370% increase, surpassing 4,900,000 tons, despite an average supply of one million tons from April to December.

Conversely, the lowest ratio of transaction volume to supply in January was attributed to rebar, although it did experience an increase compared to December, reaching 20%.

Iran's Steel Exports:

Iran's semi-finished steel exports increased by 10% to 1.07 million metric tons in the first two months of the current year, while finished steel exports fell by 25% to 357,000 metric tons. The total exports amounted to 1.42 million metric tons, marking a 2% decrease from the previous year. Semi-finished steel exports included 838,000 metric tons of billet and 228,000 metric tons of slabs. Rebar and wire rod exports experienced a decline of 27%.

The Syrian iron and steel market faces challenges due to high rebar production costs, exacerbated by prolonged civil wars and economic issues, surpassing global market prices. Notably, the sales price of 1 ton of rebar in Syria currently stands at 740 dollars, further accentuating the economic difficulties within the country's steel industry.

Yemen's rebar prices, specifically for 12-32 mm, have risen by $5 due to Red Sea events and regional insecurity, with the Mukalla factory adjusting due to increased insurance costs. The current price is $650/mt EXW, reflecting the impact of geopolitical factors on the market and the necessity for adjustments in response to changing circumstances.

This week in the Iraqi city of Erbil, most factories increased their factory prices by about $16 today.

(Van Steel, Med Steel, Hend Steel)

In terms of marketing, the factories in Erbil and the north of Iraq are very different from the factories in Sulaymaniyah.

Med Steel Iraq rebar (12-32 mm) $735/mt EXW ⬆️ (+$16.5)

Van Steel Iraq rebar (12-32 mm) $742/mt EXW ⬆️ (+$16)

Most of the factories in the northern parts of Iraq and Erbil increased their prices by $16, but the factories in Sulaymaniyah did not change their prices. Since the steel market in Sulaymaniyah and the cities close to this region was not in a very good condition, the prices were not increased.

The price of rebar in Erbil city and Sulaymaniyah city is very different from each other. Factories in Erbil have Arc furnaces. So their costs are of course higher than other factories. Therefore, the price of their products is also higher.

Super Steel Iraqi rebar (12-32 mm) $580-585/mt EXW

It is quite obvious that the quality of steel products in the electric arc furnace is completely different from that in the induction furnace. And using an electric arc furnace using LF, EAF, SAF technology provides much higher quality products than induction furnaces.

Saudi Arabia's steel market witnessed a significant transformation in 2023, characterized by a noteworthy 18.6% decrease in the average price of a ton of rebar. This report not only explores the key drivers behind this decline but also incorporates recent developments, including fluctuations in the HRC prices, providing a comprehensive overview of Saudi Arabia's evolving steel landscape. The average price of a ton of rebar in Saudi Arabia settling at 2995.54 riyals. The HRC CFR Dammam price in Saudi Arabia has experienced a change, increasing from $650 to $690.