- Electricity shortages curtail domestic steel production
- Exports remain weak but fail to boost domestic supply
Iran’s domestic billet prices increased by 54,000 rial/kg ($36/t) week-on-week (w-o-w) to 670,000 rial/kg ($445/t) as of 20 July, supported by severe supply constraints, the continued absence of electric arc furnace (EAF) billet offers, and a stronger exchange rate. Ongoing electricity shortages further curtailed steel production, tightening domestic billet availability. Meanwhile, weaker exports caused by maritime disruptions redirected limited volumes to the local market but failed to ease supply pressure.
Domestic rebar prices also rose by 45,000 rial/kg ($30/t) to 725,000 rial/kg ($481/t), driven by reduced billet supply, higher exchange rates, and persistent power restrictions that constrained production. Market participants noted that currency depreciation remained the key driver of steel prices, while inflationary pressures and limited industrial output continued to support the upward trend despite weak underlying demand.
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