Rebar joins overall uptrend in Iranian steel markets

Over the past week rebar prices have been on the rise in the local Iranian market, following the downward trend seen in this market during the previous two weeks. While a general rising trend has been observed in most long and flat products in Iran in recent weeks, the local rebar market proved to be the exception, even indicating a downtrend instead. Weak demand caused by the stagnation in construction activities can be said to be the main factor blocking a full recovery of Iran's rebar market. In the past week, however, a new rising trend has been evident in the local rebar market as most traders strive to hike their prices even though they lack the support of market demand.
 
In the local Iranian market the latest booking of 12-25 mm rebar was concluded at $560-580/mt ex-stock Tehran, compared to $550-560/mt on July 21 (indicated in SteelOrbis' previous market report). Contrary to the situation a few weeks ago when there were no serious takers for rebar offered via the Iran Mercantile Exchange (IME), traders and end-users are now showing more interest in purchasing rebar through the IME and sometimes are also competing against each other for material. The volume of transactions handled by the IME last week and in the current week is a good indication of the current recovery in the local Iranian rebar market.
 
In its last two supplies of material via the Iran Mercantile Exchange on August 2 and 5, local steelmaker Esfahan Steel sold rebar at $540-550/mt ex-works with deliveries of about 50 and 80 days and for payment in cash. On August 2 Azarbaijan Steel sold rebar via the IME at $530/mt ex-works with 20-day delivery and for payment in cash but on August 5 failed to sell rebar through the IME at $525/mt. On both August 2 and 5 via the IME, ready stock Chinese rebar was purchased by local buyers at $460-465/mt ex-stock Tehran. On August 2 ready stock Turkish rebar was sold via the IME to local buyers at $470/mt ex-stock Iranian southern ports.