In a recent development, the steel industry in Iran is facing mounting concerns over a notable lack of demand for steel products. Among the various steel products affected, sponge iron has become a focal point in the Iranian iron and steel market. This shift is impacting various sectors, including construction, manufacturing, and infrastructure development, where steel is a crucial component.
Sponge iron, a key product in the Iranian steel industry, has witnessed a significant drop in demand, which has sent ripples throughout the iron and steel market. This decrease in demand for sponge iron has raised questions about the overall health of the industry.
The steel industry is facing challenges as gas supply disruptions are expected to impact the iron ore supply and prices. Additionally, steel billet prices have sharply risen, causing pressure on steel manufacturers. This imbalance in supply and demand is particularly affecting the sponge iron market, which plays a crucial role in the steel value chain. As a result, steel production companies are grappling with these issues, which are exacerbated by limited supply and soaring prices in the steel sector.
The increase in steel production, coupled with a decrease in domestic and export demand for these products, has led to a 100% surge in steel inventories in September compared to the same period last year. This is occurring at a time when the primary consumer of these products, the construction sector, has reportedly experienced a significant reduction in transaction volume during the past season, according to the latest official report.
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