Buyer Resistance Prevents Steel Recovery

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.