Long products market was quiet till middle of last week, and then prices started rising. Higher exchange rate made traders worried about increasing prices in the future, so they started building inventories. Besides, in Iran Mercantile Exchange supply level was almost scarce, so prices were up around Rials300,000 per tonne.

For merchant bars, market was so sad till middle of the week but they finished the week at almost IRR 500,000 per tonne higher for some sizes. It seems that long products market is nearing the peak. As global prices are dropping, If government allow importing sections by open market exchange rate the cost price would be lower than current market prices.

At the moment with ex rate of IRR 19,000 per USD debar price is USD 680 per tonne CFR Iranian ports after custom duties, the cost price would be IRR 15,500,000 per tonne. If debar base price increase to more than IRR 16,000,000 per tonne surely market would be full of import parcels. Global markets prices will drop during in Ramadan but if import conditions allow, it would help the market.

Sourced - Irsteel.com

(www.steelguru.com)