Weak trend continues in Iranian rebar market

Thursday, 07 July 2011 21:25:07 (GMT+3)   |  
The downtrend in the local Iranian market, which started in mid-June, has continued during the last two weeks. The Iranian rebar market, just like the other domestic markets for long and flat steel products, had experienced a rapid rising movement up to mid-June, following the Iranian government's decision to devalue the Iranian rial on June 8. In the last two weeks, however, the Iranian central bank has gradually strengthened the value of the Iranian rial against foreign currencies.

While rebar prices had declined in January and February in the local Iranian market, the rising trend which started in March gradually pushed prices up to levels of about Rial 9.00 - 9.15 million/mt by mid-May. The upward movement of rebar prices in Iran resumed in the last week of May and this movement was reinforced  by the devaluation of the Iranian rial on June 8. Lately, however, the rising trend of the Iranian rebar market has cooled down and some price decreases have been observed. 

At present, local traders in Iran are selling rebar at Rial 8.50-8.60 million/mt ex-stock Tehran, including VAT, for immediate delivery and cash payment .

Rebar prices in the Iranian domestic market

Sizes

Price

million rials/mt (15.06.2011)

Price

million rials/mt (22.06.2011)

Price

million rials/mt (29.06.2011)

Price

million rials/mt (06.07.2011)

12-25 mm

9.10-9.25

8.60-9.00

8.60-8.80

8.50-8.60

On July 6, Iranian rolling mills sold 12-25 mm rebar via the Iran Mercantile Exchange (IME) at about Rial 8.10-8.60 million/mt for 15-90 day delivery, compared to Rial 8.10 million/mt on June 22 and down from Rial 8.85 million/mt on June 8.

US$1 = Rial 10,700 (official rate)

US$1 = Rial 12,000 (free market rate)


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