Billet: The decline in the exchange rate and intervention by the exchange market in transactions led to a drop in billet prices.
Long Products
Rebar: Lower ex-rate prompted the release of previously purchased low-priced products into the market, leading to a decrease in rebar prices.
I-beam: Market uncertainty led to a retreat in demand and a decline in I-beam prices.
Flat Products
HRC: The average hot-rolled coil price remained relatively stable due to supply management.
HRP: The decline in the exchange rate led to weaker demand and lower prices for Oxin steel HRP.
CRC: CRC prices remained almost stable due to limited supply.
HDG: HDG prices improved slightly due to the stability of HRC prices.
Weekly Analysis:
In the world market: Iron ore prices reached $95/t CFR China and then increased to $96/t. The rise was driven by higher oil prices and the resulting increase in freight rates. Including freight and insurance costs, the effective oil price rises above $150/bbl, preventing steel prices from declining. Freight costs for shipping iron ore from Brazil to China have increased from $15/t at the beginning of the year to $40/t. In effect, iron ore has become cheaper on an FOB basis, but higher freight costs have prevented a decline in delivered prices. As a result, both miners’ and steelmakers’ margins have come under pressure, leaving the entire supply chain facing losses. The closure of the Strait of Hormuz is creating an economic crisis that is affecting all sectors. It should be noted that oil exports of 20 million barrels per day were previously matched by the production and consumption of at least $1 trillion worth of goods per day. That level of production is no longer taking place because the corresponding consumption has disappeared.
Last week, restrictions on Iranian billet exports to Turkey pushed Turkish CFR scrap prices higher, reaching as much as $395/t. This, in turn, lifted Turkish rebar prices to $565/t. Russian and Ukrainian billet prices remained at around $465/t FOB. The absence of Iranian billet from the regional market has created more room for CIS billet suppliers. Overall demand remains weak, with little incentive for increased trading activity. Supply constraints and cost pressures are currently the main factors driving price movements.
In the domestic market: At the beginning of the week, the downward trend in the exchange rate led to a decline in steel prices. This was followed by new regulations from the Iran Mercantile Exchange (IME), which tightened purchase limits and increased the required down payment from 10% to 30%. In practice, mills and traders will have to pay more to purchase smaller volumes. This could force some flat and long producers to reduce or suspend production, while others may switch to induction-furnace billet production. In any case, supply is likely to become more limited. The policy appears to have been introduced to control prices. Government plans to stabilize prices for six months, and these measures may be part of that policy.
Two views currently dominate the market:
The first view is that prices will continue to decline. Supporters of this view point to the falling exchange rate, the release of products purchased at lower prices in previous weeks, and tighter money transfers due to the end of the month.
The second view is that these restrictions will push demand into the shadows. Neither billet, slab nor finished products will reach the market in sufficient quantities. Sanctions are expected to become more stringent, potentially putting upward pressure on the exchange rate. The government's policy of maintaining price stability is seen as an effort to prevent prices from rising further.
CBI average ex-rate: Rials 1,675,988/1USD
21 Sep, 2026
M.Chitsaz
Iran Steel News Bulletin
IFNAA.IR
Irsteel.com