The current declining trend in Iran's rebar market, the first such trend in this market in 2008 and which came after the soaring prices of previous months, started in early July in line with the downward trend observed in the global steel markets. Local traders in Iran are currently transacting 12-25 mm diameter rebar at $1,290-1,325/mt ex-stock, down from $1,380-1,455/mt in mid-July, i.e. marking a reduction of $90-130/mt. In such circumstances, mills' prices come down at a slower rate than the market prices as the mills usually resist such rapid price falls and some of them even close their sales for a while; however, traders who are more sensitive to market prices usually try to sell their stocks as they are anxious not to sustain high losses.
The Iranian authorities have allocated credits worth $2.2 billion for the importation of about 2 million mt of billets by private sector rolling mills. Naturally, this will provide relief for local mills and will provide a good stock of material if the mills manage to import billet during the current downtrend in prices for this semi-finished product.
Iranian traders have recently imported large volumes of rebar from CIS countries via the Caspian Sea (i.e. via Iran's northern ports), and also from China via the Persian Gulf (through Iran's southern ports). They have stockpiled rebar and other construction steel products at Iran's northern and southern ports and are selling them gradually; some of them have even incurred losses due to the fall in prices.
Most traders believe that the current downtrend is temporary and that it will not last over a long time. They think the facts indicate that another rising trend will be seen in the near future.