Currently, there is a flourishing market for long products in Iran, especially for I-beam and rebar, in contrast to the continuing calm observed in the country's flats market. I-beam sizes of 140-240 mm are already changing hands at $1,110-1,250/mt on ex-stock Tehran basis - i.e. about $70/mt higher than last week, and most traders are looking forward to higher levels in the upcoming days. After remaining stable for several weeks, Iran's I-beam market is now soaring, with the new uptrend having started early last week and continuing up to the present.
On June 15, Esfahan Steel Co., the main supplier of I-beam to the domestic market, sold about 20,000 mt of I-beam of 140-180 mm sizes at $1,074/mt with 35-day delivery through the Tehran Mercantile Exchange, which is this producer's sole sales channel. However, I-beam prices - just as with other long products - are soaring steadily in spite of the government attempts to keep prices at low levels through the prices of the state-owned mills.
The import volume of most items of steel (long and flat products) has declined since the beginning of the current Iranian New Year (20 March 2008), according to the figures from the Iranian customs authorities. This drop in imports could influence market inventory levels while it could also give rise to fears in the market. Most traders think local prices will exceed global levels if imports continue to decline in the future. In such a context, market players could be impelled to enter the market for purchases, causing an artificial build-up of demand.
Local manufacturers of I-beam produced about 2 million mt of this product in the last Iranian year (ended 19 March 2008); Esfahan Steel Co. produced about 1.6 million mt, while Iran National Steel Industrial Group accounted for about 250,000 mt. In the meantime, Iran imported about 1.2 million mt of I-beam in the last Iranian year, according to Iranian customs.