In spite of general stagnation in the Iranian domestic steel market, with declining trends observed for most long and flat products, the local I-beam market has been experiencing a rising trend during the last two weeks. 140-180 mm IPE sizes - the sizes which hold the largest market share - are currently being transacted by local traders at $730-788/mt ex-stock Tehran, whereas the same sizes had been standing in a price range of $695-755 just two weeks ago.
A couple of weeks ago Esfahan Steel, the main supplier of I-beam in Iran, announced its intention to shift production towards manufacture of rails for the railroads, in response to the weak market demand for I-beam. The announcement had the effect of stimulating market demand for I-beam. In this context, in the past two weeks traders have placed large purchase orders for I-beam through the Iran Mercantile Exchange - the formal sales channel of Esfahan Steel - and naturally such strong demand gave a boost to prices, at least temporarily.
CIS origin 80-180 mm U-beam sizes are currently standing in a price range of $650-680/mt ex-stock Tehran, i.e. down over $100/mt compared with U-beam prices in the last days of December 2008. European origin U-beam is at a higher price level than the CIS material, standing at about $690-710/mt. With local production U-beam unable to meet market demand, the shortfall is made up by imports from, principally, the CIS, China, Turkey and Europe.
In the Iranian domestic market the most recent booking for 60 x 60 mm - 120 x 120 mm angle sizes was in a price range of $570-675/mt ex-stock Tehran, down from the range of $710-790/mt in mid-December 2008. Iran's domestic market for angles, which is dominated by local suppliers, has been showing a declining trend from December up to the present. The current expectation of most traders is for a further reduction in angle prices during the coming weeks on the back of the global decline of billet prices; the Iranian rolling mills produce angles from imported billet and so naturally the global prices of billet have a direct influence on their production costs. Meanwhile, the stagnant market demand for angles is another main factor which influences the prices of this product.