Rebar prices surge upward in Iranian market

Rebar prices in the Iranian market have been rising rapidly during the current week after several weeks of stable movement. As expected by most market participants, local suppliers and traders successfully raised their rebar prices in the current week. Domestic market demand for rebar in Iran is still not very strong, although it has improved compared to a few months ago due to the greater activity in the construction sector in Iran. In addition to this demand improvement, exchange rate fluctuations and high inflation (about 25-30 percent) have also contributed to boosting local rebar market prices in Iran.
 
At present, local traders are selling rebar at $800-820/mt ex-stock Tehran for immediate delivery and cash payment, up from $760-780/mt the week before and up from $780-795/mt about three weeks ago. Domestic rolling mills, which mainly belong to the private sector, are selling rebar at lower prices than local traders. 
 
Rebar prices had declined in January and February in the local Iranian market, but in March and April there was some recovery, which has speeded up in the second week of May. On May 11, Iranian rolling mills sold several batches of 12-25 mm rebar via the Iran Mercantile Exchange (IME) at about $736-750/mt, mainly for prompt delivery, while there had been no transactions at the IME just one week ago at the offered price of $736/mt. The price increases for rebar in the local free market in the current week may encourage some traders to return to the market, thereby reinforcing market demand.
 
US$1 = Rial 10,450 (official rate)