Low market inventory and expectation of improvements after holy month of Ramadan, made long products upward by beginning of last week. Debar price improved by around IRR 300,000 per MT till and reached IRR 18.3 per MT for diameter14 mm to 25 mm exworks, including 8% VAT. But market could not absorb these increases, so was stopped by middle of the week and get back to last prices by Thursday.
Main reason behind this backward trend in prices was lack of liquidity. As there is no hope in better demand in near future, improvement in steel market investments is unlikely. Though, lack of liquidity will stay in the market.
I-beam market was in a good condition.
I-beam market is being controlled by one leader producer, so prices were upward slowly. If the situation continues, imported products would be competitive as around 6800 mt of I-beam was imported during last Iranian year which shows a significant rise compared to previous months.
Price of angle and channel was fluctuating like debar. Demand is low and higher prices were just due to increase in productions costs not real demand.
Source – Irsteel