Iranian Steel Market on Hold as Buyers Await Price Cuts

Despite the rising value of hard currencies in Iran, steel traders were unable to raise prices last week.

Local buyers halted all purchasing activity, as they expect prices to fall in the next few days, Metal Bulletin reported.

Metal Bulletin is a London-based specialist international publisher and information provider for the global steel, non-ferrous and scrap metals markets.

“The local market is already full of different types of steel, which means sellers [are unable] to determine prices at present,” a market participant said.

“In fact, sellers usually have to compromise with buyers on prices by reducing [them].”

In the free currency market, $1 could be exchanged for 36,000 rials on October 5, while it was 35,600 during the previous week. The official exchange rate on October 5, according to Oanda.com, was $1 to 30,052 rials.

Billet in sizes from 125x125 mm to 150x150 mm were traded last week at 13-13.5 million rials ($361-375) per ton ex-stock Tehran, down from 13.2-13.7 million rials ($367-381) per ton.

CIS suppliers were offering billet at $350-360 per ton CFR Iranian northern ports, which represents an increase of $10 per ton.

There was no supply of billet through Iran Mercantile Exchange last week, although Khouzestan Steel Company sold some batches of billet at 12.5 million rials ($347) per ton, on 55-day delivery terms, through the exchange during the week before that.

Local mills were selling rebar at 15.4-15.7 million rials ($428-436) per ton ex-stock Tehran, down from last week’s 15.7-16.1 million rials ($436-447) per ton ex-stock.

Major rebar supplier Esfahan Steel Company sold small batches of material through IME at 14.8 million rials ($411) per ton ex-stock, on 47-day delivery terms.

Hot rolled coil was sold at 18-19.2 million rials ($500-533) per ton ex-stock Tehran for 2-5 mm material, only slightly down from last week’s 18-19.3 million rials ($500-536) per ton.

Mobarakeh Steel Company sold HRC through IME this week at 15.96-16.37 million rials ($443-455) per ton ex-works, on 78 days’ delivery while it had sold the same material at 15.76-16.21 million rials ($438-450) per ton.