I-beam prices have been coming down steadily during recent weeks in Iran. Currently, 140-180 mm I-beam sizes are being transacted by local traders at $690-725/mt on ex-stock Tehran basis, down from $715-735/mt the week before and from $732-770/mt two weeks ago. Higher I-beam sizes are also registering a similar declining trend and the prices of some sizes have even dropped down by more than $80-90/mt. 200-270 mm I-beam sizes have already fallen to a price range of $830-892/mt ex-stock Tehran.
Iran's main domestic supplier of I-beams, Esfahan Steel, had maintained its I-beam prices stable for about one month even despite the significant decline in I-beam prices in the local market in recent weeks. As a result of the market downtrend, I-beam was available in the market at prices even lower than those of Esfahan Steel. Finally, weak demand forced Esfahan Steel to reduce its prices in its supply to the market through the Iran Mercantile Exchange on January 21. In the supply in question, Esfahan Steel reduced its I-beam prices by about $30-40/mt on average; the producer sold a batch of 180-270 mm I-beam sizes at about $750/mt, and also sold 140 mm and 180 mm I-beams at $565/mt and $680/mt respectively.
Esfahan Steel as well as some traders have accumulated large inventories due to the weak market demand. Against the background of the declining trend and existing stagnation in Iran's I-beam market, Esfahan Steel has decided to dedicate a part of its capacity to the production of rails for railways and steel balls for ball mills.
Also in the local Iranian market, 80-180 mm U-beam sizes are now in a price range of $640-680/mt ex-stock Tehran, showing a reduction of $40-50/mt compared with last week. The U-beam market in Iran is indicating the same declining trend as seen in the local I-beam market; however, the difference with the U-beam market is that most supplies are imported from the CIS, China, Turkey.
30 x 30 mm - 120 x 120 mm angle sizes are currently changing hands at $610-660/mt ex-stock Tehran, down from $640-680/mt the week before and from $660-710/mt two weeks ago. Iran's angles market, which is dominated by local suppliers, is also showing the same declining trend observed in the I-beam and U-beam markets. Most local rolling mills which produce angles use imported billet as feedstock, and so naturally global prices have a direct influence on their production costs.