Iranian merchant bar prices decline as construction stagnates

Monday, 10 August 2009 16:06:30 (GMT+3)   |  
       

I-beam prices have been falling in the last few weeks in the local Iranian market, at a time when other long and flat steel products in the country have been posting rising price trends. Stagnation in construction activities in Iran can be indicated as one of the main factors blocking the recovery of the local I-beam market; meanwhile, certain other factors such as global price trends, supplies of imported I-beam by the government to the local market, customs duty etc., also frequently have an influence on local prices.
 
At present in Iran 140-180 mm I-beam sizes are being transacted by local traders at levels of $730-750/mt ex-stock Tehran for immediate delivery and payment in cash - a price which is about $20-25/mt less than two weeks ago and $40-50/mt less than four weeks ago.

Esfahan Steel, the main local supplier of I-beam, has not completed any large sales of I-beam through the Iran Mercantile Exchange (IME) in the last few weeks as there is no great demand in the local market for its I-beam. In the last couple of days this producer sold a small batch of 140-180 mm I-beam at about $705/mt ex-works with 48-day delivery.
 
U-beam prices have also been on the decline in the last few weeks in Iran. Currently, ready stock Russian origin 80-200 mm U-beams are standing in the local Iranian market in a range of $610-635/mt ex-stock Tehran for cash payment, while prices were about $20-30/mt higher just two to three weeks ago. Chinese U-beam, which holds the second largest market share after Russia in the local Iranian market, is cheaper than Russian U-beam due to its lower quality. Most demand for U-beam in Iran is met by imports from Russia, China and Turkey. At present, a few Iranian rolling mills produce only a limited number of U-beam sizes. 
 
Just like I-beam prices, angle prices have also been indicating a declining trend in the last few weeks in Iran. 50-120 mm angle sizes currently stand in a range of $610-660/mt, compared to $640-680/mt two weeks ago. Iranian rolling mills which produce angles have recently reduced their prices due to weak demand and the general market stagnation.
 
According to the Iranian customs authorities, Iran imported 88,328 mt of U-beam (80 mm and higher) , 138,107 mt of I-beam (80 mm and higher) and 30,714 mt of angles and T-bar in the first quarter of the current Iranian year (started March 21).


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