Over 1,400 structural steel sales outlets have gone out of business in the past three years, says the head of Tehran Iron and Steel Union, Mohammad Azad.
“The recession in the construction sector has brought businesses to the brink of bankruptcy and it seems that the slump is here to stay,” he was quoted by Fooladnews as saying.
According to the official, most sellers are now shifting their focus to trading other commodities.
He added that this week steel section quotes remained the same as last week due to depressed demand. Beams were traded at 18,000 rials ($0.47), rebar at 16,200 rials ($0.42) and sheets at 21,000 rials ($0.55) per kg.
Azad noted that more trouble is looming for the sector, as the yearend is approaching and firms are in greater need of liquidity.
Before the current slump hit the market, structural section producers and sellers experienced a near seven-year boom, thanks to the controversial Mehr Housing Project—a large-scale scheme initiated in 2007 by the former administration to provide low-cost housing.
The multibillion-dollar project slowed down over the years due to lack of funding, mismanagement and charges of fraud.
In the process, the huge slump hurt domestic demand for construction materials.
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