Iran: Billet prices gain on stronger exports, rebar demand stays weak
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- Reopening of Strait of Hormuz supports exports
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- Liquidity shortages pressure long steel consumption
Iranian domestic billet prices rose by 7,000 rial/kg ($5/t) w-o-w to 585,500 rial/kg ($398/t) as of 29 June, supported by improving export sentiment following the reopening of shipping through the Strait of Hormuz and expectations of stronger overseas sales. The anticipated resumption of import order registrations and inflationary expectations also lent support to billet prices.
Meanwhile, domestic rebar prices edged up by 2,000 rial/kg ($1/t) to 660,000 rial/kg ($449/t). However, weak construction activity, tight liquidity, banking-related payment disruptions, and financing constraints continued to suppress domestic steel demand. Ample supply and sluggish trading further weighed on the long steel market.
