Long products market was downward during last week in Iran. Market participants were confused about the news that importing steel products with allocated currency from exchange room will be forbidden, till Monday that it was cleared just HRC 2 mm thickness and CRC can use this allocation for import.
But market did not respond significantly to this news as:
1. Demand is scarce. So market participants believe that any decision which change steel products cost price won’t affect market sentiment seriously. Market inventory level is enough and there is no demand, so this kind of news is not affecting market trend at the moment.
2. Declining ex-rate . Which has been on a daily basis currently and is expected to continue for a while. Though, buyers prefered holding a cautious attitude toward new purchases.
3. Wait and see policy of market participants which are waiting for the influence of government new plans.
These factors together have made long products market quiet with no serious investor. Therefore, price of angle, channel and debar bottomed and there was no interest in offers at IME.
Source – Irsteel
Zhejiang Yaang Pipe Industry Co., Limited (www.nctv.net)