Economy, Business And Markets

Demand for Steel Sections at Record Low

Demand for Steel Sections at Record Low
Demand for Steel Sections at Record Low

While the prices of steel rebar have remained more or less unchanged over the past few weeks, steel beam prices have experienced a steady growth.

Market analysts believe fluctuations in steel beam prices are the result of manipulative activities by iron traders who buy in large volumes from Iran Mercantile Exchange to control supply, Foolad News reported.

Such activities have led to increased prices for steel beams while the prices for other steel sections have remained more competitive, following the natural mechanism of supply and demand.

Under the current circumstances, buyers are only purchasing their required steel products and avoid making large purchases at the IME and in the market.

Ingot prices, which are usually affected by fluctuations in rebar prices, remained almost unchanged during the past week. With demand for steel sections at its lowest level, demands for ingots and blooms have also hit record lows. Market players are expecting ingot prices to decline by 500 rials per kilogram both at the IME and in the market in the coming days.

Experts believe the only way for the steel market to experience a boom is through growth in demand in the downstream industries, including the construction sector and the government’s projects. Otherwise, the decline in ingot prices is expected to further reduce prices for steel rebars, angles and channels.