Billet: Due to IME restrictions and the rise in the exchange rate, billet price followed an upward trend.
Long Products
Rebar: Higher ex-rate and billet price pushed rebar prices higher.
I-beam: Currency pressures drove up the price of I-beams.
Flat Products
HRC: Thanks to the increase in the exchange rate and slab prices, hot-rolled coil prices moved upward.
HRP: Higher slab and exchange rates pushed up the price of Oxin co plate.
CRC: For the first time, CRC prices surpassed IRR 2,000,000 per kg, driven by fluctuations in the exchange rate and hot-rolled coil prices.
HDG: Higher exchange rates and rising HRC and CRC prices pushed HDG prices higher.
Weekly Analysis:
In the world market: China’s holiday has started, and the market will be practically stagnant for around ten days. However, high energy costs are preventing prices from falling. 62% iron ore was traded at $92/t. The key development that could affect the market in the coming weeks is China’s restrictions on diesel exports. This could significantly alter freight costs in the coming months.
These changes will disrupt many economic calculations and could shift the origins of cargoes. For example, iron ore shipments from Australia could increase relative to those from Brazil. Chinese investment in Guinean mines could become more complicated, while exports of certain Chinese goods to Europe may no longer be economically viable.
The situation in Europe is different but also challenging. Falling water levels in the Rhine, declining gas and diesel inventories in Europe, and rising inflation in the US are all being affected by Iran’s ability to exert influence over the Strait of Hormuz, and the world is increasingly recognizing the importance of this leverage.
In the steel market, demand remains weak, with little hope of improvement. Most producers are focusing on reducing costs in order to maintain their operations and survive the current market conditions.
In the domestic market: The sharp rise in the exchange rate last week was partly predictable thanks to analytical websites, but its magnitude was beyond what the market could absorb. Rebar prices surpassed IRR 1,000,000/kg, which naturally pushed billet prices higher. The Iran Mercantile Exchange imposed new restrictions on billet purchases, but even by cancelling Monday’s transactions, it failed to achieve its objective. On Wednesday, billet prices were around IRR 5,000/kg higher than on Monday.
Billet was traded at an average base price of IRR 795,487, while slab also reached a record IRR 771,900. These increases will be passed on to finished products. At the same time, producers know that securing raw materials will be difficult. There is also talk of restrictions on gas supplies. The overall result is growing concern on the supply side, ultimately putting further pressure on producers’ liquidity.
Last week, we saw a billet auction by Mashiz Steel, and similar auctions by companies that are creditors of billet producers have also been reported. This trend is reducing the share and influence of the exchange, as producers are gradually turning to barter transactions to circumvent exchange restrictions. This is one reason for the increase in private-sector supply on the exchange.
There has also been talk of restrictions on Iran’s billet exports to neighboring countries. If confirmed, this would increase billet availability in the domestic market, but it would not necessarily lead to lower prices. With the exchange rate rising, bitcoin miners are likely to increase electricity consumption, while colder weather could reduce gas supplies. The market faces considerable uncertainty and, as in previous weeks, remains highly focused on the exchange rate. This process is putting smaller mills under pressure while increasing the profitability of larger producers.
CBI average ex-rate: Rials 1,762,815/1USD
05 Oct, 2026
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
Irsteel.com