Iranian merchant bar market declines as buyers reduce purchases

Tuesday, 05 July 2011 15:44:52 (GMT+3)   |  

In the last three weeks, merchant bar prices in the Iranian domestic market have shown some decreases in general, following the rising trend which began in April this year. The rising trend and the price reduction which followed have caused both stockists and traders to abstain from placing large volume orders. Thus, while some buyers continue to make purchases to meet their urgent needs, others prefer to adopt a wait-and-see stance. The high inflation, the government's cutting of subsidies for energy and the devaluation of the Iranian rial can be indicated as the main factors which were boosting steel prices in the local Iranian market, while the withdrawal of buyers has caused some price reduction recently.

Iranian origin I-beam prices in Iranian domestic market

Size

Price

million rials/mt (04.07.2011)

Price

million rials/mt (28.06.2011)

Price

million rials/mt (21.06.2011)

 Price

million rials/mt

(14.06.2011)

140 mm

9.35

9.03

9.22

 9.55

160 mm

10.07

10.00

10.18

 10.42

180 mm

12.89

12.44

12.64

 13.15

200 mm

14.57

14.31

14.68

 14.72

220 mm

14.06

14.03

14.35

 14.63

240 mm

15.00

14.94

15.49

 15.62

270 mm

12.24

12.28

12.59

 11.89

All prices are on ex-stock Tehran basis

Prices of most sizes of U-beam have been falling in the last few weeks in the local Iranian market. Prices of 80-160 mm U-beam (Iranian and Russian origin) are currently standing at about Rials 9.60-11.77 million/mt (about $900-1,110/mt) ex-stock Tehran, while prices were at Rial 9.70-12.00 million rials /mt (about $910-1,120/mt) last week and at Rials 9.84-13.70 million/mt ($920-1,280/mt) about four weeks ago. Local Iranian mills do not produce so much U-beam, and so the Iranian U-beam market is mainly fed by CIS suppliers.

Iranian origin equal angle sizes of 30 x 30 mm - 120 x 120 mm are currently priced at about Rials 9.10-10.32 million/mt (about $850-965/mt) ex-stock Tehran, compared to Rials 9.14-10.50 million/mt ($855-980/mt) last week and up from Rials 9.01-10.06 million/mt ($845-940/mt) about four weeks ago. The Iranian angles market is mostly supplied by local mills and competition among suppliers frequently push prices to rock bottom levels. 

US$1 = Rial 10,700 (formal rate)

US$1 = Rial 11,900 (free market rate)


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Equal-Leg Angle
Thickness:  12 mm
Edge Length1:  125 mm
Edge Length2:  125 mm
FEROCOM JSC
Equal-Leg Angle
Thickness:  10 mm
Edge Length1:  140 mm
Edge Length2:  140 mm
FEROCOM JSC