2 mm thick HRC was priced at IRR 16,800,000 per tonne on truck in Anzali including 5% VAT at the beginning of week 39, but started rising by Monday and finished the week at IRR 17,500,000 per tonne.

Price of Mobarakeh Steel HRC products increased around IRR 100,000 per tonne to IRR 200,000 per tonne but mainly 2 factors do not let domestic flat products market improve:
1. Import market increased competition
2. Lack of demand.

These 2 factors besides high domestic supply level have made flat products market quiet.

CRC market was full of fluctuations and ambiguities, different prices are available in the market sometimes with IRR 500,000 per tonne gap. Generally during last week after rise in ex rate, price of CRC increased by up to IRR 600,000 per tonne in some cases. HDG market was flat in H1 of the week and then increased by IRR 500,000 per tonne.

Iran steel market is experiencing a difficult situation. Supply level is generally very limited but also demand level has dropped. If supply level increase or ex rate declines, Iran Steel market will face harsh decreases in price which finally is a bad news for producers mainly those who produce long products from billet.

Low profit margin and high risks in steel market activities have made investors out of market to other markets such as foreign currencies and property market.

Sourced - Irsteel.com

(www.steelguru.com)