Steel prices continue to rise in the Iranian market

Rebar prices in Iran continue to sell with an increase of *20,000-23,000 (0.35-0.40$). The export price in Iranian ports is not below $540/Fob.

Rebar price in the factories in Azerbaijan is heard at $600.  The volume supplied to the domestic market decreases with the price trend and the increase in the export amount, which causes an increase in prices.

Sponge iron supply is still limited, so the offer to sell billet is not more than a month. In addition, rolling mills are facing a shortage of billets. While the export market of billet and rebar is active, another part of the mills is showing a decrease in their productivity due to the billet size mismatch.

In order to balance the market, the government implements a demand limiting policy and predicts that the production volume will increase and the price will stabilize with the increase in sponge iron supply in April. On the other hand, the imbalance in the iron and steel industry causes demand in other industries such as iron ore pellets to increase and prices to rise. The increase in tension in the market due to the cancellation of the auctions is another factor in the rise in prices.

*(Calculated at 1 USD=580,000 IRR)