Iran: Billet, rebar prices rise on higher production costs

• Higher energy costs strengthen domestic steel prices
• Rebar prices gain on exchange-rate support

Iranian billet prices increased by 21,500 rial/kg ($14/t) w-o-w to 692,000 rial/kg ($440/t), while rebar prices rose by 55,000 rial/kg ($35/t) to 780,000 rial/kg ($496/t). The upward movement was driven by higher exchange rates, rising energy costs and increased production expenses, particularly following the increase in gas prices from IRR 120,000 to IRR 159,400/cu m and electricity tariffs reaching up to IRR 19,000/kWh for some producers.

Expectations of stronger export activity following the reopening of borders also supported sentiment. In addition, potential changes in the billet-to-rebar ratio at the Iran Mercantile Exchange provided further support to rebar prices. However, weak demand and liquidity constraints continued to limit the pace of gains.