Nowadays, the real estate market in Iran is characterized by a heavy stagnation, and this has had a strong negative influence on demand for construction steel. When the market for construction steel is booming, I-beam supplies in Iran are generally exceeded by demand, As a result, prices are likely to start soaring again whenever a new surge in demand comes into existence in the construction sector.
On Tuesday, May 12, a batch of Chinese origin I-beam was sold via the Iran Mercantile Exchange at $505/mt ex-stock Tehran for immediate delivery and payment in cash. Meanwhile, on Monday, May 11, Esfahan Steel sold 160-170 mm I-beams and 160 mm U-beam at $720/mt ex-works for 40-day delivery and for payment in cash.
CIS and Chinese origin 80-140 mm U-beam sizes are currently standing in a price range of $570-600/mt ex-stock Tehran, down from $600-650/mt in mid-April. On the other hand, European origin U-beam is around $50-70/mt higher than the prices for CIS and Chinese material. With local U-beam production unable to meet market demand to an adequate degree, the greater part of Iranian U-beam demand is met by imports from the CIS, China, and Turkey.
The latest transactions for 60 x 60 mm to 120 x 120 mm angle sizes in the local Iranian market have been recorded at $560-570/mt ex-stock Tehran, down from about $580-630/mt in mid-April. Local rolling mills, which provide the majority of supplies for the domestic angles market, are operating at just 30-40 percent of their capacity due to weak market demand as well as due to financial restrictions.