A decrease in steel prices is expected, driven by weaker demand in China, according to the Iranian Steel Producers Association (ISPA). The government meanwhile is expected to support higher hot rolled coil output, Kallanish notes.

In China in theshort term, in the midst of falling steel demand due to surging Covid-19 cases, a decrease in steel prices is expected, said ISPA secretary, Khalif Soltani.

The rapid rise of Covid-19 cases in at least eight major cities of China has had a negative impact on steel demand. In the short term, a fall in steel prices is expected however, steel traders in Iran are looking to increase steel prices and it is likely that "the prevalence of Covid-19 delta variant can lead to a balance in the global market," according to a statement published on Iranian IMIDRO website.

“The newly elected government is expected to support Mobarekeh Steel company to end the existing obstacles to its second hot rolling unit so that three million tonnes of HRC can be produced. The project is national and should be completed as soon as possible. Due to energy curtailment, there are six million tonnes of sheets needed. With the support of the goverment, new projects should be accelarated to produce steel sheets to balance the market. Supply and demand of flat steel sheets in the market are not equal and due to the liquidty confusion, millis and final consumers are affected,” he concluded. 

Soltani is a former head of a Mobarekeh Steel subsidiary company, providing rail transportation services to the steelmaker and its subsidiaries.