The Iranian I-beam market has been quiet in recent weeks and has experienced some price reductions. At present, 140-180 mm I-beam sizes are changing hands in the local Iranian market at $715-730/mt ex-stock Tehran for immediate delivery and cash payment, down from $720-740/mt the week before and from $730-750/mt two weeks ago. Meanwhile, larger I-beam sizes (200-270 mm) are standing in a price range of $800-945/mt ex-stock Tehran for immediate delivery and cash payment, marking a drop of $10-30/mt compared with two weeks ago.
The most recent sales via the Iran Mercantile Exchange (IME) of Esfahan Steel - the main Iranian supplier of I-beam - took place around 11 days ago when the producer sold 200-270 mm I-beam at $775-779/mt ex-works with 70-day delivery and for cash payment. On September 16, some batches of Chinese origin 140-180 mm I-beam were sold through the IME at about $560-565/mt ex-stock Iranian southern ports.
Demand for U-beams in Iran is mainly met by imports from the CIS, China, Turkey and others, as Esfahan Steel does not produce U-beams in large volumes at present. Russian and Chinese origin 6.5-180 mm U-beams are currently standing in a range of $660-685/mt ex-stock Tehran, representing a reduction of about $10-15/mt compared with the week before. Turkish origin 6.5-180 mm U-beams, which meet European standards, are at a higher price level of $730-800/mt ex-stock Tehran. Meanwhile, as regards angles, 30 x 30 mm to 120 x 120 mm sizes are standing at $615-670/mt ex-stock Tehran, unchanged week on week but up about $5-10/mt compared with two weeks ago.
The Iranian domestic merchant bar market has been experiencing some stagnation as weak demand has significantly reduced the transaction volume in recent weeks. Local traders think that merchant bar prices have now hit rock bottom and that a further price decline is not possible, especially as billet prices are going up steadily in the global markets. In fact, global market developments in recent weeks would seem to indicate that the local Iranian merchant bar market is more likely to see some price increases in the coming period.