- Demand slows on weak construction activity, slower economic conditions
- Constrained supply, higher DRI costs limit sharper price declines
Iran’s domestic billet and rebar prices weakened during the week ended 27 July, as sluggish spot demand outweighed the impact of tighter supply and higher production costs. Domestic billet prices fell by 2,000 rial/kg ($1/t) w-o-w to 668,000 rial/kg ($440/t), while rebar prices declined by 10,000 rial/kg ($7/t) to 715,000 rial/kg ($471/t) compared with the previous week.
Market participants attributed the price correction to weak construction activity, slower economic conditions, and cautious buying in the spot market. Although limited billet availability, higher direct reduced iron (DRI) costs, and the Iran Mercantile Exchange’s revised export-based pricing mechanism continued to support underlying market fundamentals, subdued end-user demand restricted price gains.
Participants noted that inventories purchased at lower prices also limited upward movement. Meanwhile, uncertainty surrounding exchange rate movements and ongoing geopolitical tensions kept buyers cautious. Market sentiment remains mixed, with expectations that tighter supply and higher production costs could provide support once demand improves in the coming months
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