Debar market in Iran

The rapid price increase in billet and slab has been behind the uprising trend for long and flat products during recent months in Iran. However, debar has shown greater price stability in the Iranian market in spite of an increase of about $50–60/mt in semi-finished material. Of course, the price of medium-sized debar (dia. 12, 14, 16, 18, 20 mm) has increased by about $30-40/mt during recent months in Iran, but on the other hand the price of light sizes (dia. 6, 8, 10 mm) has gone down during the last six months. Nowadays, debar prices are at a level of $700/mt up to $720/mt for diameters ranging from 6.5 mm up to 32 mm. Last summer, greater price toleration had been seen in Iran ($650/mt to $750/mt). This means that in spite of some price increases, especially for medium sizes mostly used in small and medium constructional projects, the large toleration range of $100/mt last summer has already been reduced to $20/mt which presents a more reasonable range of prices. We shouldn't ignore that there are a lot of state-owned and private sector rolling mills in Iran which can supply debar and this competition can contribute to more reasonable prices. While some other sections such as I-beam are supplied by Esfahan Steel Co. and while flat products (hot rolled , cold rolled coil/sheet) are supplied exclusively by Mobarakeh steel Co., it is obvious such exclusiveness cannot provide stable and safe conditions for clients . However, there are more than 10 rolling mills which already produce debar in Iran - such as Esfahan steel , Khorasan steel , Azarbaijan steel etc. In particular, there are some private sector rolling mills which are increasing their production gradually - having a rolling capacity of six million tons per annum. The Iranian government as a supportive step a few months ago allocated bank loans of $80-100 million for imports of billet to these private sector rolling mills. Of course, Iranian debar prices are still higher than theglobal levels and we may see even higher prices after the reinforcement of the market in the spring & summer. Strong local supplier activity along with some new construction projects may guarantee a more stable market in the future.