Rebar prices in the local Iranian market have been rising steadily during the last few weeks amid the strengthening of foreign currencies against the Iranian rial. Although the winter season has weakened local market demand for rebar, the depreciation of the Iranian rial as well as high inflation in Iran are the two main factors which have pushed domestic rebar prices up to higher levels. Customers have already accepted the new price levels.
At present, local traders in the Iranian market are offering 12-25 mm rebar at about Rial 10.60-10.80 million/mt ($943-961/mt) ex-stock Tehran, including VAT, for immediate delivery and cash payment.
Rebar prices in Iranian domestic market:
Sizes |
Price million rials/mt (14.12.2011) |
Price million rials/mt (21.12.2011) |
Price million rials/mt (28.12.2011) |
Price million rials/mt (05.01.2012) |
Price million rials/mt (10.01.2012) |
12-25 mm |
9.10-9.25 |
9.35-9.65 |
9.50-9.85 |
9.90-10.10 |
10.60-10.80 |
During the last week, Iranian rolling mills sold some batches of 12-25 mm rebar via the Iran Mercantile Exchange (IME) at about Rial 8.70-9.10 million/mt ($774-810/mt) ex-works for 45 to 90-day delivery, while local mills had been selling rebar via the IME at Rial 8.40-8.65 million/mt in early December.
Iran's import volume of rebar has fallen significantly in the last few months, and this may influence prices in the domestic market in the coming period. In recent months, Iran has been importing less than 10,000 mt per month of rebar, compared to about 60,000-70,000 mt per month in early 2011, according to the Iranian customs authorities.
$1 = Rial 11,240 (official rate)