IRON and STEEL
Iran’s domestic coal consumption revolves around 2 million tons per year, 1.5 million tons of which are supplied by domestic production while the remaining 500,000 tons are imported.
However, as the Secretary of Iran Coal Association Saeed Samadi said, with the addition of the country's steelmaking capacity and the number of blast furnaces next year (March 2020-21), domestic demand is expected to rise to 3-4 million tons, meaning a serious shortage will arise.
According to Samadi, Iran’s proven coal reserves stand at around 1.2 billion tons, ILNA reported.
“Around 90% of the world’s steel are produced using coal because it’s a cheap energy resource compared to oil products. But since in Iran, significant subsidies are allocated to oil and gas products, coal cannot compete with oil products,” he said.
As per new price circular released, Japan’s leading EAF mini-mill - Tokyo Steel has lowered the domestic H2 scrap purchase price by JPY 500/MT (USD 5) at all five works in Japan. New prices for all grades shall be effective from tomorrow (15th June'19)
Amid falling Indian domestic sponge prices & decline in Bangladesh imported scrap prices, Indian sponge iron export offers have come down by USD 10-15/MT in recent deals reported, as per assessment made by SteelMint.
SteelMint learned from industry participants that Indian imported scrap prices inch down on a weekly basis in limited deals reported. Following continued global price fall, Indian scrap importers remain majorly cautious before buying actively amid weakening local semi-finish prices and still subdued finish steel demand.
As per the recent data released by NBS (National Bureau of Statistics), Chinese crude steel output records new high in May’19 at 89.09 MnT.
The two key raw material for steel production, Iron Ore and Scrap prices are moving in opposite directions. The Vale disaster at the Brumadinho tailing dam in late January this year has led to a cut in iron ore supplies, and a spike in spot prices making them to hit five years high, leaving no margins for blast furnaces.
In the latest conversation with market sources based in Bangladesh, SteelMint analyzed that imported HRC offers to Bangladesh from China witnessed significant decline by USD 20-25/MT in last couple of weeks. Bangladesh market has opened this week after Eid holidays.