- Lower billet availability may support prices in coming weeks
- Limited billet procurement pressures finished steel manufacturers
Iranian billet prices declined by 24,000 rial/kg ($13/t) w-o-w to 1,001,000 rial/kg ($558/t), while rebar prices fell by 10,000 rial/kg ($6/t) to 1,210,000 rial/kg ($674/t) w-o-w. The decline followed weakening exchange rates, which dampened buying interest and prompted market participants to adopt a cautious approach amid uncertain market conditions.
Despite the recent price correction, persistent gas and electricity shortages, production constraints and restricted direct reduced iron (DRI) supplies continue to weigh on steelmaking operations. Limited availability of semi-finished steel has also affected finished steel production, with rebar supply on the Iran Mercantile Exchange (IME) declining sharply last week. Further reductions in supply are expected as finished steel manufacturers face difficulties procuring billet.
These constraints could provide upward price support in the coming weeks, although weak demand, liquidity pressures and further exchange-rate fluctuations may keep the market volatile.
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