The latest bookings of 140-180 mm I-beam sizes in the Iranian domestic market have been transacted via local traders at $748-804/mt ex-stock Tehran, compared to a price range of $765-809 the week before. Surprisingly, I-beam prices have lately been on a declining trend in the Iranian market, even though the rumors regarding an imminent increase in the import duty on steel products have been helping to push up the prices of most long and flat steel products in the local market over the past two weeks.
The Iranian I-beam market, which is very sensitive to any developments in the local and global markets, has not yet shown any response to the import duty rumors. While local producer Esfahan Steel is main supplier of I-beam in Iran, its capacity does not adequately meet local market demand.
On Wednesday, May 27, Russian origin ready stock 140-180 mm I-beam sizes were sold at about $630/mt ex-stock Tehran via the Iran Mercantile Exchange (IME). On the same date at the IME, same size Saudi Arabian origin I-beam was sold at about $625/mt ex-stock Iranian southern port of Bandar Abbas. Also on May 27, Chinese 140-200 mm I-beam sizes were sold at $650/mt ex-stock Tehran via the IME.
CIS origin 80-180 U-beam sizes are currently being sold at a price range of $630-710/mt ex-stock Tehran, i.e., up $20-70/mt compared with two weeks ago. Meanwhile, Turkish origin U-beam is being sold at $750-770/mt ex-stock Tehran, up from $620-670/mt two weeks ago. While a few local rolling mills producing certain U-beam sizes, the majority of supplies to the local Iranian market are imported from the CIS, China, Turkey, and other sources.
In the Iranian domestic market 30 x 30 mm - 120 x 120 mm angles are currently changing hands at $608-680/mt ex-stock Tehran, up from about $560-570/mt two weeks ago - as reported in our last merchant bar analysis dated May 13. The rumors regarding a possible increase in the import duty on steel have influenced the angles market in Iran, just as they have impacted the local markets for other steel products.