Long products market was up by IRR 500,000 per tonne by beginning of the week but became downward very soon due to lower ex-rate and other factors.
As Esfahan Steel continued offering at IME, market participants don't expect any improvement as demand is low but supply level more than sufficient.
Supply level of mix debar at IME peaked at 116191 tones during 21st May to 20th June, after that started dropping till reaching 7590 tonnes during last month, now inventory levels has dropped significantly and prices at the bottom, so traders have started buying during last 20 days up to 104,000 tonnes. It may reach last record of May to June. At the other side there are about 60 working days left till end of current Iranian year and demand level is low.
I-beam market has the same situation. Therefore, any improvement in Long products market seems impossible in coming months, unless demand level change.
Another problem which Iranian long products market was faced with during last week was cheap offer of Chinese debar in the market. The imported debars are about IRR 350,000 per tonne cheaper than domestic material, so they are competitive.
When there is limited demand and domestic supply level is rather high, these import offers will put Iran long products market in trouble.