I-beam price improved during last week in Iran but because supply was stopped by Esfahan Steel Company not by better demand or market confidence in future. Other long products such as debar angle and channel were stable in price. Debar price also fluctuated a little by end of the week when supply level declined.
Inventory level of traders has decreased, but they prefer moving cautiously due to lack of demand. Two factors have influenced buying interest at the moment. At one side there is high tax which has been asked from traders and at the other side high bank rates which they can get if deposit their money at banks. Therefore, many traders prefer putting their money at banks despite working in steel market.
Some market participants expect prices improve a little In coming weeks as inventory levels is low and prices are at the bottom. But this can’t be significant as demand level is scarce. It may help long products base price improve by IRR 500,000 per tonne.
Source – Irsteel.com