DHL recently installed two competence centers in Germany and Turkey for the more efficient handling of exports to Iran.
DHL recently installed two competence centers in Germany and Turkey for the more efficient handling of exports to Iran.

Iranian Rebar Prices Curbed by Poor Demand

Iranian Rebar Prices Curbed by Poor Demand

Wire rods and structural quotes went up due to the uptrend in the global market while poor demand for rebar in Iran did not let prices increase to the same extent.
Billet sales were also limited in the domestic market due to better sentiments on export destinations.
In October, wire rod and beam quotes increased, given the steady uptrend in global steel and raw material prices seen since end-September. However, demand for rebar did not give sufficient support for growth and it was offered to local buyers at $374-411 per ton ex works last week, Ukraine-based steel market analysis firm Metal Expert reported.
Domestic billet prices in Iran differ, depending on the region and are ranging within $317-337 per ton EXW.
“For instance, in Arfa [Iron and Steel Company] in Yazd Province, it is around $33.6 per ton EXW, excluding 9% VAT while the south SKS offers $32.8 per ton EXW, as they are far from re-roller and their transportation costs are higher for export,” an Iranian producer said.
Global billet price has been on the rise recently and this could be a chance for Iranian mills to increase export tags.
In fact, Iranian buyers are not eager to accept offers from outside because of import duties and constant uptrend in the world market.
“The probability of any deals in the billet segment is quite low,” said an Iranian trader.
There is no interest in overseas longs as well.
“We were offered $375-385 per ton FOB [$405-418 per ton CFR] for rebar from Russia, but we are not actually interested,” said a market source.
Activity on the Iran Mercantile Exchange decreased in the billet segment in October, according to the volumes of sales.
In particular, Khouzestan Steel Company managed to sell 28,400 tons of billet on Iran Mercantile Exchange within a month, which is around 2.5 times less than in September.
Last week, the company offered 150 mm billet at a base price of $351 per ton EXW (excluding VAT), but no one accepted it, according to the market source.
KSC is currently enjoying exports amid market uptrend and ships around 40% of produced billet abroad. Longs sales were more active on the IME, as Esfahan Steel Company sold around 90,000 tons of beams, rebar and channel in a mixed lot over the month, while several other companies sold less than 4,000 tons of rebar in total over the month.
Most insiders believe there is room for local prices to improve, as Chinese steel products, iron ore and coking coal quotes increase.
Local demand for longs is not expected to pick up, so the sales volumes may decrease further. In the billet segment, Iranian semis producers may prefer to ship more billet on export as the global uptrend plays into their hand.

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