Merchant bar prices have been rising in the last few weeks in Iran in line with the weakening of the Iranian rial against foreign currencies. One US dollar can currently be exchanged for 15,300 rials in the free market, compared to 13,500 rials about one month ago. Local market demand for merchant bar has fallen due to the slowdown in construction projects caused by the winter weather. While concerns that prices of merchant bar (and other finished steel products) may rise further could spark a rush for purchases in future, no such increase in activity has yet been observed in the local market.
There is just one main local supplier of I-beam in Iran, i.e., Esfahan Steel, and its output is unable to meet all domestic market demand. At present, local traders are offering 140-270 mm I-beam at Rial 9.90- 17.75 million/mt ($886-1,589/mt), up from Rial 9.80-17.35 million/mt the week before.
U-beam prices have been rising in the last few weeks in Iran, just like other merchant bar products. Prices of 80-160 mm U-beam (Iranian and Russian origin) are now standing at about Rial 10.40-11.00 million/mt ex-stock Tehran. Local Iranian mills do not produce so much U-beam and so demand in the Iranian U-beam market is mainly met by CIS suppliers.
Iranian origin equal angle sizes of 30 x 30 mm - 120 x 120 mm are currently priced at about Rial 9.80-10.20 million/mt ($877-913/mt) ex-stock Tehran. The Iranian angles market is mainly supplied by local rolling mills whose capacity exceeds local market demand, resulting in strong competition among local rolling mills.
Merchant bar prices in Iran can be viewed in the SteelOrbis price reports section.
US$1 = Rial 11,170 (formal rate)