Iran: Domestic billet prices rise on tight supply; rebar slips amid weak demand

• Higher production costs push up billet prices
• 30,000-t billet export deal closed through exchange

Iran’s domestic billet prices increased by 12,000 rial/kg ($8/t) to 597,500 rial/kg ($407/t) as of 1 July, supported by tighter domestic supply and rising production costs, even as weak overseas demand weighed on export prices. Mills faced higher electricity, gas, labour, and direct reduced iron (DRI) costs, with market participants indicating export billet prices were unlikely to fall below $408/t FOB unless the exchange rate weakened.

Only one billet export transaction was concluded during the week, with a 30,000-t cargo of 3SP billet from the Bandar Abbas region sold through the exchange. Two other export offers failed to receive bids, as buyers considered the exchange rate too low. Meanwhile, domestic rebar prices edged down by 3,000 rial/kg ($2/t) to 657,000 rial/kg ($447/t), reflecting subdued downstream demand despite firmer billet values.