Rebar prices in Iran have in the current week maintained the recovery trend observed last week, following the previous decline which had lasted for several weeks. At present, local traders or re-rollers are offering rebar at about $640-645/mt ex-stock Tehran, up about $10/mt compared to the week before and up about $30-40/mt compared to three weeks ago.
The recovery of rebar prices in the local Iranian market has occurred in line with the price increases seen in global prices of billet and especially in prices of CIS billet as Iran imports the majority of its billet requirements from CIS countries. However, the rise of local demand for rebar in the summer can also be indicated as a major factor contributing to the recovery in domestic rebar prices.
On July 4 and 6, domestic producer Azarbaijan Steel sold a few batches of rebar through the Iran Mercantile Exchange (IME) at about $600/mt ex-works with 45-day delivery. In addition, on July 4 Iran National Steel Industrial Group sold rebar via the IME at $617/mt ex-stock with 18-day delivery.
On July 6, Esfahan Steel, the main state-owned supplier of rebar, sold a few mixed batches of rebar and I-beam via the IME at $632/mt.
Iranian private sector rolling mills have also been striving to raise their rebar prices in the last few weeks, while existing prices of rebar also allow them to secure some good margins.
(US$1 = Rials 10,450)