Iran Steel Prices Rise as Trump’s Win Spooks Market

The election of Donald Trump as US president has caused concern in Iran, with sellers in the Iranian steel market now pushing for price rises, despite stagnant domestic demand.

“The Republicans [coming] to power in the US cannot be good news for [Iran],” a local trader in Tehran said. “The steel market has been rising in [the past] few days, but we don’t believe it [has anything to do with improving] demand in the local market.”

Trump was elected president of the United States on Tuesday. The aftershocks started to show in Iran’s markets the day after.

In the free currency market, $1 could be exchanged for 36,700 rials on Wednesday November 9, an increase of 400 rials week-on-week. The official exchange rate on November 9, according to Oanda.com, was $1 to 30,052 rials.

Billet in sizes from 125x125mm to 150x150mm traded last week at 13.30-13.50 million rials ($362-368) per ton ex-stock Tehran, up from 13.10-13.50 million rials ($357-368) per ton last week, Metal Bulletin, a UK-based publisher and information provider for the global steel, non-ferrous and scrap metals markets, reported.

CIS suppliers offered billet at $350-360 per ton CFR Iranian northern ports, showing no change from the prior week.

Esfahan Steel Company, Iran’s principal supplier of long steel products, sold some batches of billet at 13.26 million rials ($361) per ton, on 40-day delivery terms, through the Iran Mercantile Exchange last week.

Local mills sold rebar last week at 15.20-15.60 million rials ($414-425) per ton ex-stock Tehran. They had been selling similar material at 15.10-15.50 million rials ($411-422) per ton the week before.

There were no supplies of rebar through the IME last week, sources said, with Esfahan Steel Company’s last deal taking place three weeks ago at 14.80 million rials ($403) per ton ex-stock, on 60 days delivery.

Hot rolled coil, in thicknesses of 2-5mm, was sold last week at 18.50-19.15 million rials ($504-522) per ton ex-stock Tehran, unchanged week-on-week.

And Mobarakeh Steel Company sold some batches of HRC through the IME at 16.54-17.34 million rials ($450-472) per ton ex-works, with delivery terms of 73-103 days.