Long products prices were downward by beginning of the week. Some market participants tried to increase prices by middle of the week, but market was not ready to absorb it so it was almost stopped. By Wednesday prices were the same as a week ago.
At the moment three factors are affecting Iran steel market including:
1. Weak demand due to lack of any infrastructure budget
2. Summer and Ramadan seasonal dullness
3. Lower supply level.
First two factors have affected Iran steel market during Q3 of last Iranian Year ( Oct-Dec 2013) , so market have adjusted itself with this condition. At the moment warehouses are almost empty of long products purchased during last year at cheap prices. These cheap cargoes didn’t let prices improve. Last week debar price was a little upward after a few weeks of declines, but market didn’t accept it. It shows that market is not yet ready to absorb any increase in long products prices. It was also an alert for traders to be not hopeful about persistence of current dull situation in the market.
Some market participants expect improvements in steel market in near future as government is trying to support different sectors with a USD14 billion supportive plan.
Source – Irsteel.com