Iran Faces Summer Power Outages, Russia Faces Export Pressure

 Currently, the Iranian steel industry is experiencing traditional summer power outages, and local steel mills are trying to find ways to maintain operational balance and production. According to the sales manager of Mobarakeh Steel Company (MSC), a major sheet metal producer in Iran, MSC’s power supply has been restricted since May 22, 2024, with a cumulative impact on production exceeding 200000 tons. Even though the company can use its own energy to achieve self-sufficiency in power supply, energy supply remains a challenge for the factory due to reduced power supply from the grid.

  Due to the shortage of electricity, the efficiency of Iranian steel mills in producing billets has decreased, and the current level of billet inventory is low, which has provided some support for prices.
  The Russian long material market had poor sales in July, and steel prices remained stable. Currently, due to market weakness, the sales price of Russian rebar in July is between 67000-68900 rubles/ton, and some quotes have been heard to be at the level of 66000-66500 rubles/ton. According to feedback from some market traders, the current sales situation is not good, and there may be some room for price decline, about 3000-6000 rubles/ton.

  However, the inventory level of traders yesterday was relatively low, which may also support the price. It is reported that due to the significant strengthening of the Russian ruble against the domestic currency, the interest of Central Asia, especially Kazakhstan, in Russian rebar is almost zero. Even though Russia’s cancellation of export taxes on rebar has to some extent enhanced its advantage, due to the reduced demand in the global market and neighboring countries, overseas buyers have a lower willingness to purchase, putting pressure on Russia’s exports.