The
rebar market in
Iran has been characterized by stagnation for the past two months. The price of 8-25 mm
rebar has already fallen to IRR 7.20-7.60 million per mt ($758-800/mt) ex-warehouse. ehran. Azarbaijan Steel Co. is selling its 14-25 mm
rebar at a price of IRR 7.15 million per mt ($752/mt) ex-work for immediate delivery. Meanwhile, in sales completed the week before last Esfahan Steel Co. sold
rebar at a price of IRR 7.05 million per mt (742$/mt) ex-works for immediate delivery. A few days ago
Iran National Steel Industrial Group sold 8-20 mm
rebar at a price of IRR 6.60 million per mt (694$/mt) ex-works with delivery within 90 days.
The high levels of
rebar inventory and the cold winter weather conditions have already succeeded in created stagnation in the Iranian long products market (especially as regards
rebar and I-beam) even though global prices are still on the way up.
Iran imported about 900,000 mt of
rebar in the 21.03-20.11.2007 period, according to Iranian customs data. Such a large import volume, which is very high compared to the 125,000 mt for the corresponding period of last year, has helped build up high inventory levels.
The Iranian
longs market last experienced a rising trend in October 2007, when prices of 8-25 mm
rebar peaked at the incredible level of $840-870/mt ex-warehouse. However, the market collapsed some time later and the sliding trend has continued up to the present time. Nevertheless, in spite of the many development projects, including projects for residential
construction, launched during the current year by the Iranian government and the private sector, the Iranian authorities have managed to control market prices for most long products, especially for
rebar and I-beam which are principally used in
construction.
As regards the overall Iranian steel market, given the global steel price increases, the high inflation rate in
Iran (more than 25 percent) and the rising import costs due to the UN sanctions, most Iranian steel traders expect a booming trend in the coming months, especially when customers rush to conclude purchases ahead of the Iranian New Year holiday (21-23 March 2008).
Exchange rate on the free market: US$1 = IRR 9,500