Iran Rebar Price Today | Steel Consumption Falls Below 200kg per Capita
Iran Steel Market Faces a New Paradox: Consumption Falls While Upstream Demand Remains Strong
The Iran steel market in late October 2026 is facing an unusual divergence. Domestic steel consumption is weakening amid a slowdown in construction activity, while upstream raw materials continue to attract strong demand on the Iran Mercantile Exchange.
According to the head of the Iranian Steel Producers Association, per-capita steel consumption, which had historically ranged between 220 and 270 kilograms, may now have fallen below 200 kilograms per person as a result of the prolonged market slowdown. irib-news.ir
This is an important signal for the Iran steel market because higher steel prices do not necessarily indicate stronger physical demand. Construction activity, project liquidity and purchasing power remain under pressure even after major increases in steel and rebar prices.
Latest available Iran rebar prices also show a mixed market. Ghaem Razi 12 mm rebar was reported near 113,270 tomans per kilogram, while Nishabur 16 mm rebar stood at around 105,910 tomans. Other major products were quoted in the 109,000–112,000 toman range. Vana News
The uneven movement suggests that the market has not established a clear bullish or bearish trend. Some producers are raising quotations while others are holding or reducing prices, reflecting increasingly cautious buyer behavior. Vana News
The upstream market is sending a different signal. On October 18, 115,750 tonnes of direct reduced iron (DRI) were offered on the Iran Mercantile Exchange and the entire volume was sold when matching transactions were included. Chilan Online
Despite full absorption, the weighted average DRI price in Iran declined to approximately 52,690 tomans per kilogram, down around 4.7% week on week. This means upstream demand remains strong, but buyers are securing material at lower prices. Chilan Online
The decline could eventually ease part of the pressure on steel billet prices, since DRI is a major raw material for electric-arc-furnace steel production. However, energy, transportation and other production costs remain elevated.
Transportation has become particularly important. Industry estimates suggest that producing one million tonnes of steel can require roughly four million tonnes of material and product movements across the supply chain, making higher logistics costs a significant component of production expenses. irib-news.ir
Profitability is also under pressure. The association says margins that once reached roughly 30–32% have fallen below 10% across the industry, with some producers operating close to break-even levels. irib-news.ir
The Iranian iron and steel market is therefore being pulled in opposite directions: weak downstream consumption is limiting finished-steel prices, while production and replacement costs are preventing a rapid correction.
If DRI and steel billet prices continue to soften, Iran rebar prices could face additional downward pressure. If upstream costs turn higher again, however, rolling mills will have greater reason to defend current price levels.
Overall, the latest data show that price strength and real consumption are increasingly disconnected. Falling per-capita steel use, full absorption of DRI supply and mixed rebar pricing are creating a complex price-discovery environment.