The rising trend in the Iranian rebar market has continued in the last few weeks due to the ongoing weakness of the Iranian rial. Accordingly, traders and rolling mills with high stocks of rebar or billet have benefited as the prices of their materials have risen by 15-20 percent within just a few weeks. However, the transaction volumes are not so high, while some buyers who hope for an eventual correction of prices have left the market. Other buyers need to purchase rebar and cannot afford to postpone their purchases.
At present, local traders in the Iranian market are offering 12-25 mm rebar at about Rial 11.40-11.70 million/mt ($1,010-1,037/mt) ex-stock Tehran, including VAT, for immediate delivery and cash payment, up from Rial 10.60-10.80 million/mt the week before and Rial 9.90-10.10 million/mt two weeks ago.
During the current week, most Iranian rolling mills have not sold rebar via the Iran Mercantile Exchange (IME) apart from one mill which sold rebar at Rial 9.50 million/mt (842$/mt) with 90-day delivery, compared to prices via the IME of about Rial 8.70-9.10 million/mt ex-works for 45 to 90-day delivery about two weeks ago. Iranian mills had been selling rebar via the IME at Rial 8.40-8.65 million/mt in early December.
Iran's rebar import volume 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 11,280 (official rate)