Iranian rebar prices decline after hitting peak

Rebar prices in the Iranian domestic market have declined during the current week following the peaking of the market's rising trend at the start of the week. 8-20 mm rebar has already fallen to a price level of $1,000-1,050/mt in Iran's local market, and is expected to slide even further in the coming days. From the last days of February, prices had maintained upward movement till last Monday, when they reached a peak of $1,040-1,085/mt. However, prices did not keep this level for long and have been sliding since last Tuesday.
 
Usually the market for steel in Iran, just like the markets for other commodities, experiences an upward trend during February and March due to the high levels of demand ahead of the Iranian New Year holiday (begins March 20). However, the local Iranian rebar market still lacks stability, while the strong levels of rebar stocks mean that it is more difficult for high prices to be maintained for a long time. Most buyers, who are generally eager to satisfy their requirements before the New Year holiday begins, are still waiting for greater market stability, though there is just one week left to the holidays which will last for two weeks.
 
The Iranian state-owned rebar-producing mills, including Esfahan Steel Co. and others, are currently working at full capacity. Meanwhile, privately-owned rebar producers are mostly operating below capacity as they are suffering from a shortage of billet at the present time. The total capacity of the Iranian rebar mills (both public and private sector mills combined) would normally be able to meet the market demand in Iran. However, as a result of the shortage of billet supplies and also the financial  restrictions due to the UN sanctions against Iran's nuclear program, Iran's private-sector rebar mills are currently operating at under 50 percent of their full capacity.