- Higher raw material costs support prices
- Market expects limited downside in prices
Iran’s domestic steel market remained subdued during the week ended 27 July as weak demand and the Arbaeen observance kept trading activity limited. Billet prices increased by 2,500 rial/kg ($2/t) w-o-w to 670,500 rial/kg ($433/t), supported by higher raw material costs and upward pressure on the exchange rate. Despite the price increase, sluggish spot demand and limited market activity restricted stronger gains.
Rebar prices remained stable at 715,000 rial/kg ($461/t) as weak downstream demand offset support from higher production costs and tighter supply. Meanwhile, I-beam prices declined due to weaker demand. Flat steel markets were largely inactive, with HRC and CRC prices edging lower or remaining unchanged, while HRP prices received some support from higher slab costs. With several public holidays further limiting activity, the exchange rate is expected to remain the key driver of domestic steel prices in the near term.
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