The following trends were observed in the domestic steel market, largely driven by the rising foreign exchange rate, despite stable or low demand in some sectors:
Billet: Billet market showed an upward trend in pricing, thanks to the appreciation of the currency, even though demand did not see any significant change.
Long Products
Rebar: Rebar price was ascending, directly correlated with the increasing currency rate.
I-beam: Market making, combined with the changing ex- rate, led to an increase in beam prices, even while consumption remained low.
Flat Products
HRC: 2 mm thickness HRC in Mobarakeh rose sharply, climbing from Rials 6,100,000 on Saturday to Rials 6,500,000 by Tuesday. This price increase was attributed to supply management alongside the rising currency rate.
HRP: A combination of supply constraints and the appreciation of the currency pushed Oxin Co HRP price higher.
CRC: Despite a severe shortage in the market and low consumption, CRC price increased toward the end of the week, driven by the rising currency value.
HDG: Increased prices for HRC and the appreciating currency rate were the factors that drove up HDG market.
Weekly Analysis:
In the world market: The market is in a predictable, pre-holiday lull, with low expectations for major price changes unless an unexpected surge comes from China, which currently seems unlikely due to global political and economic uncertainty.
There are no serious tides or major movements currently visible in the global market. We are in December, and naturally, both supply and demand are slowing down, as is typical for this time of year. Under these conditions, prices generally remain stable without significant fluctuation until mid-January of the following year.
The only factor that could potentially shift the market is the Chinese market, which remains active until the end of January. However, we do not see an optimistic outlook or any promising indicators emerging from China.
The world is currently saturated with political issues, and one must wait for a new period of calm or stability to emerge.
In the domestic market: The new pricing changes on the exchange, based on the Second Hall rate, were finally announced, which immediately led to market disruption and price increases. This occurred even as the US Dollar rate had been on the rise since the beginning of the week.
Despite the fact that exports remain halted, prices—particularly for rebar—faced strong competition on the exchange and consequently increased.
Key finished and semi-finished steel products (Billet, Rebar, and Sponge Iron) have set maximum base prices for exchange offerings under the new valuation method, while raw materials like Pellet and Concentrate are expected to maintain their current pricing levels.
The increase in base prices on the exchange caused the market to take a sharply ascending trend. Currently, the price gap between rebar and HRC is over Rials 200,000, which logically should be around Rials100,000.
However, the market is not reacting quickly because the existing inventory of rebar, which was purchased at the Rials 310,000 level, has not yet been absorbed by consumption.
Furthermore, mills possess sufficient inventory of both billet and rebar. A large volume of goods sold on the exchange was offered in the secondary market the following day at prices lower than the exchange rate.
Therefore, the actual impact of the new pricing changes will take at least two weeks to be fully felt in the market.
Those familiar with economics understand that the budget deficit has increased due to political issues and government expenditures. Consequently, the trend for the ex-rate and inflation is entirely predictable.
Over the past two weeks, due to the halt in exports, steel producers have intensified pressure on the government to raise domestic market prices. Discussions regarding exports by the suppliers in the export ring have not yet begun.
CBI average ex-rate for Steel Products (SANA): Rials 702,442 / 1USD
08 Dec 2025
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
IRSTEEL.COM