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Buyer Resistance Prevents Steel Recovery

Mills with high inventories have no option but to reduce their prices.Mills with high inventories have no option but to reduce their prices.

Iranian buyers’ resistance to local suppliers’ attempts to raise steel prices is the main blockage to a market recovery.

Mills with high inventories have no option but to reduce their prices, Metal Bulletin reported.

In the free currency market, $1 could be exchanged for 35,600 rials on September 28, the same price as last week.

The official exchange rate on September 28, according to Oanda.com, was $1 to 30,102 rials.

Billet in sizes from 125x125 mm to 150x150 mm traded this week at 13.20 million-13.70 million rials ($371-385) per ton ex-stock Tehran, down from 13.00 million-13.50 million rials ($365-379) per ton.

CIS suppliers offered billet at $340-350 per ton CFR Iranian northern ports, unchanged from last week.

Khouzestan Steel Company sold some batches of billet at 12.50 million rials ($351) per ton, on 55 days’ delivery, through the Iran Mercantile Exchange this week.

Local mills sold rebar at 15.70 million-16.10 million rials ($441-452) per ton ex-stock Tehran. This compared with 15.60 million-16.80 million rials ($438-472) per ton last week.

Major rebar supplier Esfahan Steel Company sold small batches of material through the IME at 14.50 million rials ($407) per ton ex-stock, on 55 days’ delivery.

Hot rolled coil (2-5mm) was sold at 18.00 million-19.30 million rials ($506-542) per ton ex-stock Tehran, compared with 18.10 million-19.50 million rials ($508-548) per ton last week.

Mobarakeh Steel Company sold some hot rolled coil this week at 15.76 million-16.21 million rials ($443-455) per ton ex-works, on 60-80 days’ delivery. It sold similar material at 15.45 million-15.65 million rials ($434-440) per ton through the IME.

 

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