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Global prices surge but Iran’s iron market still in recession

07 August 2017 [12:10] - TODAY.AZ

By  Trend


Although the prices of iron and minerals have skyrocketed over the past several weeks, the surge in global prices has failed to help Iran’s iron market climb out of the deep recession, a union official Told Trend.

"The construction sector is still in recession and the number of construction projects in the country is decreasing year by year therefore the rise in prices is incapable of helping the market get out of the recession," the head of Tehran Iron and Steel Union, Mohammad Azad, told Trend.

"The surge in prices has not had any positive impact on the demand and supply. In the meantime the supply of iron and its products in the market is higher than the demand," he added.

However, the price rise has benefited the producers of the raw materials, though the market still remains in recession.

"The surge in the global prices has paved the way for Iranian producers to benefit from exporting some parts of their products," he added.

Mohammad Azad further stated that the prices of iron ingot have hiked by 40 percent in Iranian market since late June which has eventually caused a surge in the prices of iron products.

Per kilo of iron currently is offered at $0.61in the Iranian market which earlier was traded at $0.49. In the meantime, the prices of iron ingot have reached $0.61 from $0.41.

He further touched upon the stocks of steel and minerals in the Tehran Stock Exchange (TSE) saying the growth of the shares in the equity market does not indicate that the iron market has emerged from the recession.

The traders at the TSE have witnessed a considerable growth in the main index over the past month due to the recent surge in the global prices of mining and steel products.

The main index of the TSE over the past week grew by 1.4 percent as metal and mining companies were in demand for a third week.

URL: http://www.today.az/news/regions/163841.html

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