Rebar prices have continued to rise in the local Iranian market in line with the price increases of billet and other semi-finished steel products in the global market. CIS billet prices exert a strong impact on Iranian rebar prices as Iran imports the majority of its billet requirements from CIS countries (mainly Russia and Ukraine).
At present local traders and rolling mills are offering rebar at about $865-870/mt ex-stock Tehran for immediate delivery and cash payment, compared to about $800-835/mt just the week before, $770-780/mt two weeks ago and $755-770/mt three weeks ago.
On August 29, state-owned Iranian National Steel Industrial Group (INSIG) sold some batches of rebar through the Iran Mercantile Exchange (IME) at $755-783/mt for 85-day delivery, up from $678/mt with 90-day delivery on August 23. Azarbaijan Steel, another state-owned rebar supplier, sold a few batches of rebar via the IME at $775/mt for 85-day delivery on the same date. Also on August 29, Kavir Steel - a privately-owned rolling mill - sold rebar via the IME at $745-800/mt for 85-day delivery. Esfahan Steel sold some mixed batches of I-beam and rebar at $735-755/mt for 55-day delivery, also through the IME on the same date.
Given the continuing rising trend of Iran's rebar market, some buyers (especially those not in urgent need of material) have left the market in the hope that prices may come down in the coming weeks. On the other hand, some traders or dealers not previously involved in the steel business have entered the steel market recently in the expectation of making easy profits.
(US$1 = Rials 10,600)