The I-beam market in Iran has flourished after a stability seen a few weeks ago. I-beam sizes of 140-240 mm have already reached a price range of $1,038-1,100 /mt ex-stock Tehran (the last week's price range was $995-1,065/mt ), while the 200 mm I-beam size which is at $1,180/mt (the last week's price level was 1,1400 per m/t )- a price higher than the other sizes due to its low supply.
Esfahan Steel Co., along with Iran National Steel Industrial Group, are the sole state-owned suppliers of I-beam in Iran. They have sold some large quantities of I-beam through the Tehran Mercantile Exchange in recent weeks. Those large supplies of I-beam could have made some stability in the market for few weeks, however, a soaring trend has appeared since Sunday-June, 8.Traders have already closed their sales and are currently waiting for the possible-stability in the market. Considering the recent upward trend, Iranian I-beam prices (which were at much lower levels than global levels in the near past) may catch up the global market levels in the near future.
However, traders have piled high stocks of I-beam (local products and imports) in their warehouses, while there are also plentiful stocks of imported I-beam at the ports (mainly in Iran's northern ports on the Caspian sea), which are waiting for clearance. Naturally, such stocks will not allow any extra-ordinary price increase in the near future. Iran imported about 1.2 million mt of I-beam in the last Iranian year (21.03.2007-20.03.2008), and now there is an expectation for higher imports in the current year. The Iranian authorities have decided to keep the customs duty on I-beam at 10 percent in spite of discussions on whether to reduce the duty (the Iranian authorities did reduce the customs duty on other steel products such as hot rolled coil and wire rod).
Meanwhile, some privately-owned mills, capable of rolling I-beams, are gradually coming on stream. Arian Steel began production operations with its I-beam rolling line during the last months of 2007 (this line produces just medium sizes I-beam). Such a tendency indicates that the I-beam market will no longer be monopolized by state-owned plants.