I-beam prices are soaring rapidly in the Iranian domestic market, continuing the strong trend which started in the last days of February. I-beam sizes of 140-240 mm have already reached a range of $957-1,012/mt ex-stock, with the exception of 200 mm size material which is a lot higher at $1,130/mt ex-stock. The current prices show an increase of 7-12 percent compared with 10 days ago.
The acceleration of the increases in global steel prices since last December 2007 has strongly influenced the Iranian market, while other specific factors have reinforced local demand in Iran. Most contractors for construction projects in both the public and private sectors usually prefer to buy material before the end of the outgoing Iranian year (March 20), due to money allocation issues and other considerations. This situation has resulted in very strong demand which has pushed prices up higher and higher. In the meantime, the high rate of inflation in Iran caused by the government's ineffective financial policies, as well as the high number of construction projects launched by the government, have helped to create high domestic demand for construction material, especially for I-beam and rebar.
The market demand for I-beam is currently so strong that, in spite of imports of 1.1-1.2 million mt of I-beam handled by the government and traders during the current Iranian year (21.03.2007-20.03.2008), and, on the other hand, despite the strong supply in recent days of I-beams from Esfahan Steel Co. (main supplier of I-beams in Iran), prices are still soaring! At present, most traders have already stopped their sales due to the surge in prices. Nevertheless, there is a possibility of a downward trend after the Iranian New Year holiday (Nowroz), as prices in Iran have exceeded global levels, and as I-beam stocks in the country are currently on the high side.