Local Iranian merchant bar prices still falling

The falling trend in Iran's merchant bar market is still continuing; merchant bar prices declined during last week, while further reductions are likely in the current week. The strong stagnation in Iran's construction sector as well as the delays in the government's development projects have greatly damaged local demand for merchant bars.
 
I-beam prices declined significantly in the local Iranian market last week. The latest bookings of 140-180  mm I-beam sizes have been recorded at $655-675/mt ex-stock Tehran for immediate delivery and cash payment, down from $670-690/mt two weeks ago and $700-720 three weeks ago. Larger I-beam sizes (200-270 mm) are standing in a price range of $787-925/mt ex-stock Tehran, unchanged compared with one week previous. 
 
The last supply of I-beam by Esfahan Steel, the main Iranian supplier of I-beam, via the Iran Mercantile Exchange (IME) took place on October 13, when the producer sold a mixed batch of I-beam, U-beam and angles at $695/mt ex-works with 40-day delivery. Subsequently, on October 18, a small ready stock batch of Chinese origin 140-180 mm I-beam sizes was sold via the IME at $530/mt ex-stock Iranian southern port of Bandar Abbas for cash payment.
 
The local Iranian U-beam market, which is mainly occupied by imports from the CIS, China and Turkey has also been indicating a decline in recent days. Russian and Chinese origin 6.5-180 mm U-beam sizes are standing at price levels of $625-630/mt ex-stock Tehran, representing a reduction of about $10-15/mt compared with the last few weeks. 30 x 30 mm up to 120 x 120 mm angle sizes are in a price range of $580-640/mt ex-stock Tehran, marking a drop of $5-10/mt compared with the last few weeks.