Dealing with recession in the iron and steel market
To deal with the recession, some sources have reduced prices and offered discounts. However, these measures have failed to increase demand
Iran’s iron and steel market is currently dealing with the recession and is facing many challenges and is in a deep recession. The demand has decreased drastically and this has caused market participants to face problems such as power outages. In this situation, the price of iron is also decreasing.
The impact of housing recession on the iron market
The severity of the recession in the housing market has had a direct and serious impact on the iron and steel market. Contrary to expectations, in response to this recession, which was expected to flourish in the summer season, the demand for iron has decreased sharply. In addition, investors have also refused to invest in this market and the market has been affected by the recession.
Trying to deal with the recession
To deal with the recession, some sources have reduced prices and offered discounts. However, these measures have failed to increase demand and the market remains stagnant. Steel producers are also facing problems such as power outages and currency problems.
Differences in other markets
While the iron and steel market is stagnating, other markets are showing changes. The total index of the stock market has grown and the price of the dollar has reached the channel of 57 thousand tomans after several weeks of decline. The price of gold has also remained stable and has distanced itself from market fluctuations.
The effects of recession on Steel Hall
Stagnation in the steel market and low inflation expectations have caused a decrease in demand and supply in the Industrial Hall of the Commodity Exchange. The price of iron is decreasing and the rebars offered in the market are waiting for a further drop in the price of the currency.
Problems caused by power outages
The power outage in July caused the closure of many steel plants. This issue has not only harmed the country’s economy, but it has also been a problem for steel factories.
Decrease in transactions and supply
Rebar transactions have decreased and the supply of bullion has also shown the lowest amount in the year. These cases indicate the unfavorable situation of the market and the market participants are waiting for the government’s responses in the field of new industrial policies.
The future of the steel market
Despite holidays and technical problems such as power outages, prices are expected to remain relatively stable. Market participants are waiting to see what the new government’s plans are for the steel industry and whether there will be a relative boom in transactions from the beginning of August.
https://t.me/AsenSteel
This post is written by vahidhatami