Long products prices were upward during last week in Iran. By Saturday after rise in exchange rate, sections prices were up between USD 17 per tonne to USD 45 per tonne and On Monday by USD 27 per tonne to USD 45 per tonne. By Wednesday steel mills increased prices by USD 53 per tonne to USD 89 per tonne and made traders more and more confused.

Market participants had no confidence in the upward trend as real demand is scarce. Transactions levels were limited and after announcement of new policy of government in exchange market, steel market became calm. After offers from warehouses in Tehran increased, buying interest dropped and made prices drop by USD 27 per tonne on Wednesday.

By end of the week the downward trend continued but especially for prices offered by traders in Tehran, Steel mills didn't decrease prices on Thursday, as their sale price is near cost prices especially for small mills dependant on billet. So they can't afford drops in prices. Any way at the end of the week section market was full of sellers with no interest in buying.

Real demand level is so low, so if the trend continues, market will face a depressed situation. Meanwhile parcels purchased in IME during November end till December end will come to market within next weeks, if exchange rate drop more as steel mills will be in need of liquidity at the end of the year, they would decrease prices but it wouldn't be so much for small mills.

(Sourced from www.irsteel.com)