During last week, sections prices started increasing suddenly in Iran. Traders became more interested in buying from Iran Mercantile exchange. For Debar and I-beam market prices increased to IRR 12,500,000 per tonne but by Sunday onward as ex rate dropped market became silent and buyers stopped dealing.

Average debar price was around IRR 15,000,000 per tonnes and for diameters 8 mm to 18 mm quality A3, market is facing supply shortage. By Monday after ex rate decreased besides some rumors about stoppage of construction projects market became quiet.

Generally market was in wait and see policy, some traders worried about more price declines, offered at low prices, but mills and big traders didn't decrease prices. By Wednesday it was announced that in coming week debar price at IME would be IRR 13,250,000 and I-beam price around IRR 13,910,000 per tonne so market sentiment improved.

If base price of debar and I-beam increase by IRR 800,000 per tonne in IME would influence market positively. Supply level is limited and this price increase is just for testing market sentiment in weeks near Ramadan. If this happen, sections base price won't drop in Ramadan when construction activities decrease.

During last week, merchant bar prices were downward too as billet price decrease and demand level was down. But their inventory level is low, so market participants expect higher prices in coming weeks.

Sourced - Irsteel.com

(www.steelguru.com)