Rebar prices are currently following a gradual rising trend in the local Iranian market. 12-25 mm rebar, which hold the largest market share, are now being transacted by local traders at $750-770/mt ex-stock Tehran for immediate delivery and cash payment - a price range which is about $25-30/mt higher than last week and about $30-40/mt higher than two weeks ago.
On Sunday, November 30, the Government Trading Corporation of Iran (affiliated to Iran's Ministry of Commerce) supplied Chinese rebar through the Iran Mercantile Exchange (IME) at $647/mt ex-stock Tehran. Chinese rebar had failed to find a buyer at the same price level a few weeks previous. On the same date Azarbaijan Steel also failed to sell its rebar at $722/mt through the IME, having refused a bid from buyers at $706/mt ex-works. Esfahan Steel, which is one of the main domestic suppliers of rebar, has not offered any supplies of the product in question in the last few days.
Rebar prices have been rising slowly during recent weeks in Iran, though certain fluctuations have been seen. Some traders are of the view that recent transactions indicate that the market stagnation may come to an end if the existing trend continues. Privately-owned rolling mills, which had been trying to hold out against the falling trend a few months ago, have already adapted to the new market circumstances. Of course, they are asking the Iranian authorities to increase the customs duty on rebar, as foreign rebar imports entering Iran are subject to low customs duty.
Recently the Iranian government announced it will provide some financial credit facilities for private sector rolling mills; however, the details and procedures involved have not yet been disclosed. Local rolling mills have asked the Iranian authorities to increase billet imports (to be carried out by the government or by the rolling mills themselves) instead of increasing finished product imports, especially given that the rolling mills report an average unused capacity of about 70 percent.