Last week long products market trend improved after exchange rate increased. As producers supply level is limited, some market participants are optimistic about future but low demand level should be concerned. Expectation of 150,000 tonnes sections demand during last week in IME was not achieved and it was around 88,000 tonnes, near supply level of Isfahan Steel mill.

As debar price had increased during previous weeks and I-beam demand has dropped it saw some decreases during week 03.

Average price of debar in Tehran was around USD 1,038 per tonne and ex-work price was USD 1,032 per tonne at the beginning of the week. Average price of Ahvaz origin 8 mm to 32 mm debar was USD 1,021 per tonne and Isfahan Origin 14 mm to 25 mm debar was USD 1,037 per tonne on Sunday.

I-beam average price for size 14 mm to 28 mm was around USD 1, 025 per tonne which was almost stable but supply level was limited. Angle and channel price which were upward till the middle of the week, moved back by end of the week.

Last months purchases of debar at low prices will be delivered this month and will make debar market calm. But some market participants believe that as supply level is limited prices won't drop. But it depends on mills, as in the last 2 months of the year they may increase supply level to get more liquidity. Main problem of the market is low demand level which has put traders on wait and see policy.

(Sourced from www.irsteel.com)