I-beam prices have been declining rapidly in recent days in the Iranian domestic market. Local Iranian traders have been transacting 140-180 mm I-beam sizes at $730-765/mt on ex-stock Tehran basis, for immediate delivery and cash payment, i.e. down about $20-50/mt from the previous week and marking a decrease of approximately $65-70/mt compared with mid-December. Currently, the fear of incurring greater losses is forcing some traders to clear their stock even if this means selling material at less than the purchase price; and this desire to sell off stock in turn has the effect of intensifying the collapse of prices and the stagnation of the market.
I-beam prices in Iran have in general been on a steady decline from last August up to the present, in spite of some temporary pauses. Previously there was higher demand for I-beam compared with other long products such as rebar, as some traders thought the I-beam market was more stable and that I-beam prices would maintain higher levels for a longer time; however, in recent weeks I-beam prices have gradually been approaching the levels of rebar prices. At the present juncture, I-beam prices are about $100/mt higher than rebar prices in the local Iranian market - a larger gap than seen in the international markets.
Chinese and CIS origin I-beams are being traded in the local Iranian market at the same level as Iranian origin material or at slightly less, due to the lower quality involved. On account of the existing stagnation and the declining prices Iranian importers are holding back from purchases of foreign material and have mostly left the market. Since the beginning of 2009 there have been no significant imports of I-beams thanks to the long New Year holidays of the CIS countries. Meanwhile, Iranian importers who are seeking lower prices are taking their time examining the quotations of suppliers.