According to a recent agreement reached between the IME and steel suppliers, the steel market is expected to reach equilibrium in terms of supply and demand; SENA quoted Hossein Panahian, SEO of the IME as saying.
Referring to a meeting attended by Panahian and general managers of leading local steel producers, the IME’s chief said the decisions made during the meeting are expected to eliminate the prevailing disruption in supply and demand, while addressing steel producers’ concerns.
“From now on, both individual and institutional investors are authorized to enter steel trades at the IME,” said Panahian, adding that a surplus of steel, which has been recently caused by medium-sized steel producers, have led to disruption in supply and demand, stoking concern among leading suppliers.
IME’s chief also noted that a large amount of the steel products are being traded via the IME, however, 15 to 20 percent of the products are being traded outside the IME, causing instability in supply and demand.
The minimum offering for some steel products used to be close to 110 tons, while the new approval in the above mentioned meeting is set to decrease the volume in a bid to facilitate trade.
