Rebar prices have continued their upward trend in the last two weeks in the local Iranian, reflecting the trend in billet prices from the CIS, which is the main source of billet imports for Iran. At present local traders and rolling mills are offering rebar at about $770-780/mt ex-stock Tehran for immediate delivery and cash payment, compared to about $755-770/mt just the week before and to about 715-725/mt two weeks ago.
On August 15, Iranian state-owned rebar suppliers Azarbaijan Steel and Iranian National Steel Industrial Group (INSIG) sold some batches of rebar via the Iran Mercantile Exchange (IME) at a price $675/mt with about 65-day delivery . Kavir Steel - an Iranian privately-owned re-roller - sold rebar at $675/mt with about 35-day delivery via the IME on the same date.
The existing trend in both the local and global steel markets have created the conditions for Iranian re-rollers and traders, especially for those with large stocks, to increase their profit margins. Of course the rising trend in rebar may also weaken local demand as many buyers usually leave the market when prices are no longer acceptable. However, both Iranian buyers and sellers prefer a stable market with limited price fluctuations as it usually provides better conditions for business, especially as a rapid rising trend is often followed by a sharp fall which creates a risky market for sellers and buyers.
(US$1 = Rials 10,600 on August 17; US$1 = Rials 10,430 on August 10)