The prices of equal angles in the Iranian domestic market have declined substantially during the past week. Equal angle 30 x 30 mm - 120 x 120 mm sizes have most recently been transacted by local traders at $1,020-1,130/mt ex-stock Tehran for immediate delivery, whereas the price was at $1,080-1,240/mt one week before and at $1,180-1,300/mt two weeks before. The market registered a peak in prices at the end of June, reaching levels of $1,550-1,630/mt. Of course, these levels did not last long with the market entering a declining trend after a few days.
During the whole first half of the current year, the domestic market for angles in Iran followed a strong and continuous rising trend - the same as other long and flat products. From the beginning of July, Iran's angles market started to decline, and this trend has continued up to the present. At first, most traders and even rolling mills closed their sales as they thought that the price decline would not last long, but would come to an end after a few weeks.
The falling trend, however, has now lasted for more than two months, and is expected to continue for at least the next few months. As a result, local traders and rolling mills have reopened their stocks and resumed their sales as they are obliged to bring in some revenues. Nevertheless, most rolling mills are already incurring losses as they bought billets at higher levels than the prices at which they are selling angles and other finished products at present. Some of these mills are still unwilling to place firm orders for billet as prices are coming down steadily and buyers are looking forward to seeing prices hit bottom.
Most local demand for angles in Iran is met by domestic rolling mills. There are about 10 to 12 main privately-owned rolling mills which produce equal angles in Iran. On the other hand, unequal angles still have to be imported as low demand means that their production is uneconomical for local re-rollers.
According to Iranian customs, Iran imported about 140,000 mt of angles in the last Iranian year (21.03.2007-20.03.2008).