Iranian Domestic Steel Prices Rise Despite Subdued Demand

Domestic steelmakers in Iran managed to raise prices in the free market last week despite weak local demand.

“We have seen signs of recovery now and then, but the rising trend cannot flourish while we have stagnation in the two main sectors of the economy, which includes construction and industry,” a trader in Iran told Metal Bulletin, a specialist international publisher and information provider for the global steel, non-ferrous and scrap metals markets based in the UK.

In the free currency market, $1 could be exchanged for 36,000 rials on October 19, unchanged from a week ago, although the official exchange rate on that day had improved slightly at $1 to 30,052 rials, Oanda.com reported.

Billet in sizes 125x125mm to 150x150mm traded this week at 13.20-13.60 million rials ($366-377) per ton ex-stock Tehran, up from 13.10-13.50 million rials ($364-375) per ton last week.

CIS suppliers continued to offer billet at $350-360 per ton CFR Iran’s northern ports and, following a few weeks of inactivity, major semi-finished supplier Khouzestan Steel Company sold some batches of billet at 12.50 million rials ($347) per ton, on 32-day delivery terms, through the Iran Mercantile Exchange.

Local mills sold rebar at 15.20-15.50 million rials ($422-430) per ton ex-stock Tehran last week, up from 15.00-15.50 million rials ($417-430) per ton a week earlier.

Major rebar supplier Esfahan Steel Company sold small batches of the material through IME at 14.80 million rials ($411) per ton ex-stock, on 33-day delivery terms.

Hot rolled coil (2-5mm) was sold at 18.40-19.10 million rials ($511-530) per ton ex-stock Tehran, compared with 18.30-19.00 million rials ($508-527) per ton last week.

Mobarakeh Steel Company sold some HRC this week at 15.96-16.37 million rials ($443-455) per ton ex-works, on 64-day delivery terms, having sold the same material at 15.76-16.21 million rials ($438-450) through the IME a few weeks ago.