In the local Iranian market, the latest transactions for 12-25 mm
rebar were concluded in a price range of $1,350-1,400/mt ex-stock Tehran for immediate delivery - a range which is about $35-40/mt less than last week and about $90-110/mt less than at the begining of July.
Rebar prices are continuing to drop down due to the fall of
billet prices in the global markets, while, in addition, local demand in
Iran is not so strong at the present time. Expectations of lower prices have intensified the stagnation in the local market, with the result that local suppliers of
rebar have not been able to sell their products in recent weeks .
For about three to four weeks now there has been a stagnation in the Iranian long products market, especially in the
rebar market.
Rebar prices, which had been soaring steadily in recent months, reached their peak levels in the last days of June, when they stood in a range of $1,425-1,500/mt ex-stock Tehran. The current downtrend started in early July when signs of weakening demand gradually began to emerge in the local market.Although we are currently in the height of the summer
construction season in
Iran, we should not forget that most contractors have already bought their requirements, which helps explain why market demand has been declining significantly in recent weeks.
The global
billet price reduction which started two to three weeks ago has also reinforced the declining trend in the
rebar market. Currently, most local traders have stopped purchase of
rebar from both local and foreign sources, as the global
billet prices have not yet begun to stabilize.
Both last week and during the current week, a large volume of
rebar supplied by Esfahan Steel Co., as well as Chinese
rebar offered by the Iranian Ministry of Commerce, failed to find any buyers at the Tehran Mercantile Exchange (TME). Only a small quantity of
rebar (about 1,300 mt) was sold lately by Esfahan Steel at about $1,427/mt through the TME - a price which is higher than the market level.
Finally,
Iran imported about 1.2 million mt of
rebar during the last Iranian year (21.03.2007-20.03.2008) while it imported 370,000 mt of
rebar in the first three months (21.03.2008-20.06.2008) of the current year, according to Iranian custom house statistics.