Iran Iron Dealers Syndicate has called for support from Iranian government to private sector for increasing in steel production to 16 million tonnes from about 10 million tonne last year.

Mr Mohammad Azad head of Iran Iron Dealers Syndicate told the Persian service of ILNA that the Iranian steel market has stabilized to some extent due to the end of construction season and renewed imports. He said "Iron prices have become moderate compared to the September levels.”

He said that although Iran’s domestic steel mills are likely to raise production to 12 million tons by next March resulting in shortage of 8 million tons as compared to the demand. He said "Some 50% of this 8 million ton shortage could be met by domestic companies. But if producers do not receive the much needed raw materials and importers do not get financial backing, iron prices are expected to surge with the onset of spring, when constructions resume.”

Mr Azad said that it is imperative for the government to plan ahead for critical seasons and offer genuine assistance to the factories to further reduce the 8 million ton shortage adding 50% of the figure may easily be compensated by expanding the existing capacity. He cautioned that in absence of timely actions Iran may face a price surge in the next spring.