Rebar prices have been rising rapidly especially during the last few days in the local Iranian market due to the weakening of the Iranian rial against foreign currencies.
At present, local traders are offering 12-25 mm rebar at about Rial 9.8-9.9 million/mt (about $884-894/mt) ex-stock Tehran for cash payment and immediate delivery. Both local mills and traders are looking forward to more price increases in the coming days as foreign currencies are expected to increase further in strength against the Iranian rial. Meanwhile, tightened international sanctions - especially banking sanctions - have been exerting an increased impact on the Iranian steel market in the last few months. For example, import volumes of steel have fallen in the last couple of months.
The winter season has weakened local market demand for rebar, just as for other construction. In spite of this, local rebar prices have been rising due to the abovementioned softening of the local currency. The US dollar is currently being exchanged at about Rial 15,500 in the free market.
Rebar prices in Iranian domestic market:
Sizes | Price million rials/mt (01.12.2011) | Price million rials/mt (08.12.2011) | Price million rials/mt (15.12.2011) | Price million rials/mt (21.12.2011) |
12-25 mm | 9.20-9.30 | 9.10-9.25 | 9.30-9.40 | 9.80-9.90 |
During the current week , Iranian suppliers sold some batches of 12-25 mm rebar via the Iran Mercantile Exchange (IME) at about Rial 8.40-8.72 million/mt ($767-790/mt) ex-works for 30 to 90-day delivery. This price level is unchanged from the prices seen a few weeks ago at the IME.
$1 = Rial 11,080 (official rate)