An overall stagnation is observed in Iran's merchant bar market, just as in the country's other long product markets, while prices still continue to decline steadily.
IPN beams of 140-180 mm sizes - the sizes with the largest market share - are being transacted by traders at $830-840/mt ex-stock Tehran in the local market, while the price stood at $840-860/mt the week before and at $865-875 two weeks previous. However, I-beam has been on a moderate declining curve in recent times, in comparison to the prices of other products (e.g. rebar) which have seen a strong collapse in recent weeks in Iran.
In the Iranian domestic market, imported 80-160 mm U-beam - mainly bought from the CIS and China - is standing in a price range of $750-800/mt ex-stock Tehran, whereas it stood at $900-930/mt just the week before and at about $980-1,000/mt two weeks previous. As U-beam is not produced by local mills in significant quantities, the traders who import U-beam have a near-monopoly in the market, and this was a key factor which caused U-beam prices to hit peak levels higher than other similar long products a few months ago when all prices were shooting up.
The local angles market in Iran has also been characterized by a strong overall stagnation in recent weeks in Iran. Many rolling mills in Iran produce equal angles at present so there is a only small volume of imported material in the market. The latest transactions for angles of 30 x 30 mm - 120 x 120 mm sizes were completed at $650-800/mt ex-stock Tehran. The week before local traders were transacting the same size angles at $770-900/mt ex-stock Tehran.
In general, the feeble demand for merchant bars in recent months has created a strong stagnation in the local Iranian market. The preponderance of stocked materials in this declining market has already shifted from traders to the mills. In addition, disappointed traders who have suffered some heavy losses in recent months have been buying just about anything which may be sold promptly. The local rolling mills are now facing into their most difficult period as they are producing at a loss and most of them cannot afford to stop production.