Rebar prices are still coming down in the local Iranian market. Prices of this steel product have now been on a downtrend for 40-50 days in
Iran, though currently the decrease trend is not so sharp. At present, 12-25 mm
rebar sizes are changing hands at $600-630/mt ex-stock Tehran, down from a price level of $615-645/mt the week before. The current declining trend commenced in mid-December when the price of 12-25 mm
rebar stood at $740-770/mt ex-stock Tehran.
Most local privately-owned rolling mills have reduced their output due to the low prices, as they greatly fear that they may incur losses if they stock material. Meanwhile, state-owned steel plants have not reduced their outputs in recent months although their situation is not much better in spite of the financial support they receive from the government.
On Wednesday, January 28, the state-owned rolling mill Azarbaijan Steel was unable to sell its 14-25 mm
rebar sizes through the
Iran Mercantile Exchange (IME). The producer offered
rebar at about $610-615/mt ex-works with 20-day delivery and for cash payment; however, customers answered with a much lower bid of $540/mt, which was refused and so no deal was concluded.
Large stocks of
rebar have been built up at the ports by importers and by the government. Furthermore, high inventories have been accumulated at governmental steel plants and rolling mills due to the weak levels of demand. Most traders expect further price reductions in the near future and this is another factor which prevents them from placing any large orders at the current time.