Iran Steel Prices Rising on US Election Fallout

The rise in steel prices in Iran could speed up significantly this week, although local demand is not strong.

The appreciation of the dollar against the Iranian rial, as well as concerns regarding US policy after that country’s recent presidential election, has helped sellers raise their prices, Metal Bulletin reported.

“Political factors have boosted prices, not demand,” a local trader said.

In the free currency market, $1 could be exchanged for 37,100 rials on November 17, up by 400 rials week-on-week. The official exchange rate on Wednesday, according to the Central Bank of Iran, was $1 to 32,041 rials. Oanda.com gave the rate as $1 to 30,102 rials.

Billet in sizes ranging from 125x125mm to 150x150mm traded last week at 14.8-15.2 million rials ($399-410) per ton ex-stock Tehran, up from 13.3-13.5 million rials ($358-364) per ton the week before.

CIS suppliers offered billet at $400-410 per ton CFR Iranian northern ports, a rise of $50 per ton week-on-week.

Khouzestan Steel Company sold some batches of billet at 14.1 million rials ($380) per ton, on 37 days’ delivery, through the Iran Mercantile Exchange last week.

Local mills sold rebar last week at 17.4-18.1 million rials ($469-488) per ton ex-stock Tehran. They had been selling at 15.2-15.6 million rials ($410-420) per ton the week before.

There was no supply of rebar through the IME last week. Esfahan Steel Company sold some batches of rebar at 14.8 million rials ($399) per ton ex-stock, on 60 days’ delivery, four weeks ago.

Hot rolled coil (2-5mm) sold last week at 22.4-23.1 million rials ($604-623) per ton ex-stock Tehran, compared with 18.5-19.15 million rials ($499-516) per ton the preceding week.

Mobarakeh Steel Company sold some batches of HRC last week at 16.54-17.34 million rials ($446-467) per ton ex-works, on 66 days’ delivery, again through the IME.

source: Financial Tribune