If you are an activist in the field of steel, two points are probably more important to you; One is the daily price of rebar, beam, etc. and the second is the pricing method and the factors affecting it. The pricing of steel sections such as rebar or beam is based on various factors. In this way, formulas are used to make rebar pricing more accurate.

In the continuation of this article, we are going to check the rebar pricing method. If you need to learn more about this, you will find it useful to read the following sections.

What factors are effective in rebar pricing?

Due to the importance and role of rebar in the implementation of various construction projects, its price is important for building contractors and builders. In general, the price of this product changes under the influence of several basic factors:

Raw material rates

The first thing that is considered in the rebar pricing process is the price of raw materials. To produce rebar, a process is carried out that turns iron ore into ingots and finally, rebar is produced. Based on this, the cost price of extraction and production of materials that are used in the rebar production process is effective in determining the price of the final product. In general, in rebar pricing, the ingot price is used as follows:

Rebar price = steel ingot price + 11% (rolling fee) + 9% (tax)

The price of steel ingots is usually taken from sources such as Khuzestan Kodal rate. Also, to determine the bullion price in the domestic market, the formula “Domestic market bullion price = CIS Union export bullion price * Semi-exchange rate * 80%” is also used.

CIS refers to the Commonwealth of Independent States that gained independence from the former Soviet Republic.

The weight of the purchased rebar

In the process of rebar and bar pricing, the weight of the product should be calculated.

In addition to that, the use of the Stall table can also be useful. In this table, the standard weight of one meter of rebar is mentioned, and by multiplying it by 12, we get the weight of each branch of rebar in different sizes. Finally, with the help of the following simple formula, you can calculate the price of the rebar load:

The price of rebar = the weight of one meter of rebar (according to the Stahl table) * 12 (the length of a branch of rebar) * the price of one kilo of rebar

Of course, keep in mind that the weight of each rebar branch produced by different factories is slightly different. So, for a more correct calculation and accurate rebar pricing, you should use the weight of the rebar in question.

Dollar price

For rebar pricing, the dollar is known as one of the most important factors. This is the reason why the price of rebar and other steel sections changes during currency fluctuations. Usually, with the increase in the price of the dollar, the price of steel sections also increases. On the other hand, if the exchange rate decreases, it can lead to cheaper steel industry products.

Product pricing in global markets

Another factor that affects rebar pricing is the rates in the world market. This issue is more important in the discussion of rebar exports. Due to the devaluation of the national currency in recent years, the price of Iran’s export rebar has decreased in the world markets. This issue has made the purchase of Iran’s export rebar more attractive.

Supply and demand

Another important factor in rebar pricing is supply and demand. A decrease in demand or an increase in supply can cause the price to decrease. On the other hand, an increase in demand or a decrease in supply will raise the price of the product.

The effect of the type of rebar on the price of rebar

Another thing that affects rebar pricing is the type of product and its standard and grade. Rebar is produced and marketed in different sizes and grades (A1 to A4). In the meantime, a product such as size 14 or 16 grade A3 rebar has a higher price than similar samples due to its use and high demand.

For this reason, it is recommended to buy the best type of rebar suitable for your work at the time of purchase in order to save money.

The price of rebar in the stock market

One of the ways to buy rebar is to buy the product from the commodity exchange. This work has its own conditions and steps. But what is the effect of offering the product on the commodity exchange on rebar pricing?

The base price of the product offered in the commodity exchange is determined directly by the manufacturer. Therefore, an increase or decrease in production costs can change the price of the product offered on the stock exchange. Since part of the rebar market is supplied through the commodity exchange, as a result, the mentioned rates will play an important role in rebar pricing.

In summary, in this article we talked about how to price rebar. Various factors are involved in this process, the most important of which we have examined. We hope the tips provided are useful for you. But if you still have a question about this, you can raise it in the comments section so that it will be answered by the experts of the Royal Construction Group.