In spite of the current stagnation in the Iranian merchant bar market (a similar stagnation also prevails in Iran's other longs markets), market players are hoping for a recovery in the post-Ramadan period, in particular with the support of the global price increases seen in steel in recent weeks.
Even though Iran's steel markets are in general stagnant at the current time, strong demand for I-beam is still evident. The most recent bookings of 140-180 mm I-beam sizes have been completed at $730-750/mt ex-stock Tehran, up from $716-745/mt the week before. I-beam prices in Iran have generally been stable in the last few weeks despite a few fluctuations.
On August 30, local producer Esfahan Steel sold about 53,000 mt of 140-180 mm I-beams at around $689/mt ex-works with about 45-day delivery via the Iran Mercantile Exchange (IME). However, actual demand for this material was far greater, reaching over 300,000 mt. On September 2, a ready stock batch of Chinese origin 140-180 mm I-beams was sold through the IME at about $560/mt ex-stock Iranian southern port.
The Iranian U-beam market has shown some price increases in the current week. Russian origin 80-140 mm U-beams - the sizes for which demand is greatest in Iran - are currently changing hands at $670-680/mt ex-stock, up from $650-665/mt the week before. Meanwhile, Chinese U-beams are priced at about $20-30/mt less than the same material from Russia.
The Iranian angles market has indicated a price decrease in the current week. Angles of 30 x 30 mm up to 120 x 120 mm are currently standing in the price range of $590-650/mt ex-stock Tehran, compared to $590-680/mt the week before and $610-730 two weeks ago. The Iranian domestic market for angles is mainly dominated by local mills, with a small share occupied by imported material. The privately-owned local re-rollers which produce angles generally determine their prices according to two main factors; local market circumstances and the global prices of billet.