- Iran-US, Persian Gulf tensions increase market uncertainty
- Higher global iron ore, freight costs support steel prices
Iranian billet prices rose by 37,000 rial/kg ($23/t) w-o-w to 842,000 rial/kg ($512/t), while rebar prices increased by 80,000 rial/kg ($49/t) to 980,000 rial/kg ($596/t). The sharp increases were primarily driven by exchange-rate volatility and heightened concerns over future price movements, following renewed uncertainty around the Persian Gulf and Iran-US tensions.
Producers also raised offers amid tighter supply due to infrastructure constraints and potential gas-supply restrictions. In the billet market, buyers increased purchasing activity amid expectations of further price rises, despite no significant improvement in underlying demand.
Rebar prices also benefited from higher offers from producers and a weaker rial. Meanwhile, firmer global raw-material and freight costs, including higher iron ore, pellet and billet prices, provided additional support to Iranian steel prices.
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