Business And Markets

Weak Demand for Steel

Weak Demand for SteelWeak Demand for Steel

Strong supply and weak demand are stabilizing the iron and steel market, a member of the board of directors of Iran's Iron and Steel Union said Tuesday. "Due to rising fuel prices, production costs have increased for small plants. So, they can't operate at full capacity and, as a result, can't self-finance purchase of billets," Mohammad Chitsaz said. These small steelmakers do not have the same competitive advantage as large manufacturers like Foolad Mobarakeh and Zob Ahan do, he said. "Global prices have also dropped, so we don't expect any increase in domestic market prices until a sizeable rise in demand is secured."