Price of iron in Iran drops by 22%

Business Materials 25 May 2016 16:31

Baku, Azerbaijan, May 25

By Fatih Karimov - Trend:

Price of iron has decreased by 22 percent in Iran in recent weeks, Iran's Tasnim news agency reported May 25.

Each kilogram of iron was traded for $0.46 (based on official rate of 30,439 rials per each USD) in iron market, which indicates a fall by $0.13.

The decreasing trend in Iran's iron market started from 2015 and continued till March 2016, when it increased to $0.6. But the figure started to fall again after a short period.

Decreasing the iron price in Iran markets is linked to stagnation in construction sector.

The price is expected even to fall to $0.4 in coming weeks giving the fact that the stagnation in construction and housing sector will continue.

Iran's iron and steel market is experiencing overload, Ali Farhadi, representative of an Iranian iron construction plant said, adding at least 3 million tons of steel currently is stored in warehouses due to lack of demand.

Iranian iron producers are also facing problems to export surplus output, he added.

According to the latest monthly report of the World Steel Association, over 5.6 million tons of crude steel were produced in Iran during the first four months of 2016, 1.5 percent more compared to the same period of 2015.

About 1.51 million tons of crude steel was produced in Iran in April 2016, or 7.8 percent more year-on-year.