Cheap imports of Chinese and Turkish rebar have been preventing Iranian producers from hiking their prices for their domestic market. In order to control local market prices, the Iranian government frequently supplies imported rebar through the Iran mercantile exchange (IME). This has a strong downward influence on local market prices and sometimes even causes a reduction in the sales prices of state-owned steel plants.
On Wednesday, August 19, ready stock 14-25 mm Chinese origin rebar was sold via the IME at $480/mt ex-stock Iranian southern ports. Meanwhile, on the same day at the IME, local supplier Azarbaijan Steel failed to sell rebar at $520/mt as the buyers were seeking a lower price.
12-25 mm rebar sizes are currently standing at the level of $540-550/mt ex-stock Tehran in the local free market. This price range has been stable in the last few weeks due to the large inventories of imported rebar as well as the weak demand in the local market.
Even the summer season, which is usually a peak period for construction activity, has failed to give any significant upward push to rebar prices in the local Iranian market. Most governmental projects and private sector-backed construction activities remain suspended, preventing any strong release of demand in the Iranian market.