The Iranian merchant bar market has registered a decline in prices over the last two weeks, while the transaction volume in the local market has fallen due to weak demand in spite of previous hopes for a recovery after Ramadan. Furthermore, the reduced prices of billet in the global markets could also help reinforce the falling trend in Iran's merchant bar market.
I-beam prices have declined strongly in the local Iranian market during the past week, to the surprise of most market participants. At present, 140-180 mm I-beam sizes are changing hands at $670-690/mt ex-stock Tehran for immediate delivery and payment in cash, down from $700-720/mt two weeks ago and $715-730/mt three weeks ago. Higher I-beam sizes (200-270 mm) are standing in a price range of $785-925/mt ex-stock Tehran, marking a price reduction of $15-30/mt compared with two weeks ago.
The most recent sales of Esfahan Steel, the main Iranian supplier of I-beam, took place last week when the producer sold about 44,000 mt of 140-180 mm I-beam sizes via the Iran Mercantile Exchange (IME) at $625/mt ex-works with 50-day delivery and for payment in cash, showing a decline compared to the producer's previous sales. Meanwhile, on October 11, Chinese origin 140-180 mm I-beam sizes failed to find a buyer via the IME at $548/mt ex-stock Iranian southern port, as bids did not exceed $532/mt.
The Iranian U-beam market, which is mainly supplied by the CIS, China and Turkey, has also moved on a downtrend in recent days. Russian and Chinese origin 6.5-180 mm U-beams are currently standing at $635-645/mt ex-stock Tehran, down about $25-40/mt compared with two weeks ago. 30 x 30 mm to 120 x 120 mm angles are now in a price range of $590-645/mt ex-stock Tehran, marking a fall of $40-70 per m/t compared with two weeks ago.