Over the last two weeks the I-beam market in Iran gained stability before starting to move on a downward trend, in the wake of the price increase which had been observed during the previous couple of weeks. Coming up to the end of last week 140-180 mm I-beam sizes were being transacted by local traders at $1,100-1,210/mt on ex-stock Tehran basis while the same material had stood in a price range of $1,165-1,283/mt just two weeks previous - marking a decline of $65-73/mt.
The soaring trend in Iranian domestic I-beam prices started to grind to a halt at the beginning of July, with price levels subsequently entering a downward trend. The large supply of material to the market by Esfahan Steel Co. (Iran's main supplier of I-beam), and also the release of stocks by local traders in recent weeks have resulted in a certain stagnation in the Iranian I-beam market at the present time, just as in the rebar market. Esfahan Steel Co. sold about 50,000 mt of I-beam and debar in its last supply to the market on Wednesday, July 9, 2008.
According to data from Iranian customs, Iran imported about 130,000 mt of I-beam in the first three months of the current Iranian year (20.03.2008-20.06.2008) whereas the country's I-beam imports had reached 210,000 mt in the corresponding period of the last Iranian year - constituting a reduction of about 40 percent year on year. Market prices could be strongly affected if the fall in imports continues in the coming months. Most local traders are already expecting another rising price trend in the near future and those who have sufficient financial resources at the current time are sitting on their stock in the hope of gaining higher prices.