Long products traders were eager to destock during last week in Iran due to worries about more declines in prices. Average price of debar size 8-32 mm dropped by USD8 per tonne to USD 736 per tonne ex work in Ahwaz market. Price of I-beam size 14-18 mm also dropped by USD7 per tonne to USD 734 per tonne ex work in Esfahan market. Meanwhile, buyers were generally holding wait and see policy.

There was some news in the market that Esfahan Steel Co has decided to reduce sections production and increase billet supply level, some other mills are also thinking about it. This news increased the possibility that prices have reached bottom but yet some market participants are worried about more declines in prices as it was experienced during third quarter of last Iranian year.

As future market trend is not clear at all, market participants prefer avoiding high inventory level. If prices continue declining it won't be more than USD 12 per tonne in near future. As the mills have enough inventory for at least a month, prices won’t increase definitely.